Good Through

What Is Good Through?

Good through is a type of limit order used to buy or sell a security or asset at a certain price for a specified period of time. Good through orders are an example of time in force orders.

Understanding Good Through

Typically, a good through order is a stop loss or limit order that remains valid until the expiration date passes unless the order is executed, canceled, or amended. A special case would be a good 'til canceled (GTC) order which is good until the investor specifies it is not.

Good through is a special instruction used when placing a trade to indicate how long an order will remain active before it is executed or expires. These options are especially important for active traders as it allows them to be more specific about the time parameters. Good through is a useful way for active traders to keep from accidentally executing trades. By setting time parameters, they don’t have to remember to cancel old trades. Unintended trade executions can be very costly if they occur during volatile market conditions when prices are rapidly changing.

Good through time periods are set by investors, such as "Good This Week" (GTW), "Good This Month" (GTM), or for any other specified period of time. A day order is another example of an order specification where the order remains active, good through the end of the trading day.

Another type is GTC orders, which are effective until the trade is executed or canceled. Some common exceptions include stock splits, distributions, account inactivity, modified orders, and during quarterly sweeps. These can be a useful option for a long-term investor who is willing to wait for a stock to reach their desired price point before pulling the trigger. Sometimes, traders might wait several days or even weeks for a trade to execute at their desired price.

Using Good Through Order

Good Through Order Example

For example, suppose an investor places an order at the start of September to buy 100 shares of Facebook (FB) with a limit of $350. This means the investor is happy to purchase the shares for $350 or less.  Conversely, if the investor places an order at the beginning of September to sell 100 shares of Facebook with a limit of $380, they are not prepared to accept a price below $380. If the investor adds a GTM to the order, it will expire and be automatically canceled at the close of business on Sept. 30 if it has not already traded.