What Is Good This Week (GTW)?
Good this week (GTW) orders are active till the end of the week. Failure to complete the order by the week’s end will cancel it.
Knowing Good This Week
A limit or stop order often includes a GTW contingency. GTW orders are uncommon on bargain brokerage platforms. Usually, full-service brokers provide them, enabling more customization of customers’ deals.
GTW offers a compromise between daily and indefinite orders. Investors using GTW orders must be careful not to miss crucial developments that might impact the security’s price.
Say an investor thinks a Monday news release will boost a stock on Wednesday. A GTW order lets the investor acquire the shares before the announcement. The order would be valid until Friday but void if not performed before then. If the investor doesn’t know the order wasn’t fulfilled, they may lose their expected gain next week.
Many traders have not utilized GTW orders before due to their rarity in broker offerings. Instead, brokers often provide market, limit, and Good ‘Til Canceled (GTC) orders. GTC orders are like GTW orders but stay active forever unless the investor cancels them. In our scenario, a GTC order might have been executed on Monday before the news was disclosed, benefiting the investor.
A GTW Example
Suppose you use a full-service brokerage account to buy individual stocks. Full-service clients can place market, limit, GTW, and GTC orders.
Based on the expected product release, do you think XYZ Corporation shares will climb soon? You’ve chosen to buy XYZ shares in anticipation of this news but don’t know how.
Considering your alternatives, a market order involves defining the desired number of XYZ shares and acquiring them at the best price. If market sentiment changes around the time you place your purchase, you may pay much more than intended.
However, limit orders let you choose a maximum security price. However, such a constraint reduces the likelihood of order execution.
You conclude with GTW and GTC orders. GTW orders work like market orders, but you trade until the end of the week. Since GTC orders have no expiration date, they may last longer.
After considering these factors, you place a GTW order and mark it in your calendar to confirm the transaction on the last day of the week.
Conclusion
- Good this week (GTW) orders expire automatically at the end of the week.
- Discount brokerage platforms rarely provide GTW orders.
- Market orders, limit orders, and GTC orders are prevalent.
