Good This Week (GTW) is a type of order that remains active until the end of the week in which it is issued. If the order is not executed by the end of the week, it will be automatically canceled.
Key Takeaways
- GTW orders expire automatically at the end of the current week.
- Such orders are relatively rare, generally absent from discount brokerage platforms.
- More common order types include market orders, limit orders, and Good ‘Til Canceled (GTC) orders.
Understanding Good This Week (GTW)
A GTW contingency is typically added to a limit or stop order. GTW orders are not commonly available on discount brokerage platforms; rather, they are typically offered by full-service brokers, allowing greater customization of trades.
GTW orders offer a middle ground between orders that last just for the trading day versus those lasting indefinitely. Investors using GTW orders should be careful to ensure that their order aligns with key events that might affect the price of the security they are trading.
For example, suppose it’s Wednesday, and you believe a Monday news release will cause a certain stock to rise. You might place a GTW order to buy the stock before the news release. This order would be valid until the end of Friday but would be invalid if not executed before then. If you fail to realize that the order didn’t execute, you might miss out on anticipated gains the following week.
Most traders are unlikely to have used GTW orders since they are rarely offered by brokers. More common are market orders, limit orders, and Good ‘Til Canceled (GTC) orders. GTC orders are similar to GTW orders but remain active indefinitely unless executed or canceled by the investor. In the above example, a GTC order might have been beneficial as it could execute on Monday before the news release.
GTW Example
Suppose you’re a stock market investor using a full-service brokerage account. As a client, you have access to several order types, including market orders, limit orders, GTW orders, and GTC orders.
You are confident that shares in XYZ Corporation will rise soon based on an anticipated product announcement. You decide to purchase shares in anticipation of this news but are unsure of the best approach.
Market Orders:
Specifying how many XYZ shares to buy at the best available price. However, market sentiment can change, leading you to pay significantly more than expected.
Limit Orders:
Specify a maximum price you’re willing to pay, reducing the likelihood of execution due to price restrictions.
GTW and GTC Orders:
GTW orders act as market orders lasting until the week’s end, while GTC orders have no expiration date, increasing your flexibility.
Considering all options, you choose a GTW order and mark your calendar to check whether the trade has executed by week’s end.
Related Terms: Market Orders, Limit Orders, Good ‘Til Canceled Orders, Full-Service Brokerage.
