What is a valid order before cancellation?

A valid order prior to cancellation is referred to as GTC, which, as the name implies, means that an order is valid prior to cancellation or completion of the transaction.

Investors usually ask for such orders because they can be placed in advance and no longer pay attention to them, instead of having to place them on a daily basis.

Where have you heard of a valid order before cancellation?

New York Stock Exchange (NYSE) and NASDAQ end acceptance of pre-cancellation valid orders and pre-cancellation valid stop orders in February 2016 to promote investors in the high market. Volatility risk awareness of such orders.

You can still place valid pre-cancellation orders and valid pre-cancellation stop orders with most brokers, but not directly with the New York Stock Exchange and Nasdaq.

What you need to know about a valid order before cancellation...

Although the name indicates that such orders are indefinite, brokers usually set a time limit of 30 to 90 days in case the order is forgotten. If not completed within this time limit, the order will be canceled or postponed.

Pre-cancellation valid orders are executed in conjunction with conditional orders so that pre-cancellation valid orders are executed only when your conditions are met. For example, if you want to buy a financial instrument at a specific price, your order will only be executed when the instrument reaches that price.