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NISM Certifications · NISM-Series-VIII: Equity Derivatives · Trading Mechanism

In the NSE derivatives trading system, which of the following best describes a 'Good Till Cancelled' (GTC) type validity or order condition?

A Good Till Cancelled order stays in the trading system until the trader cancels it or the contract expires, subject to exchange limits on validity. It differs from a Day order, which lapses at session end, and from an Immediate or Cancel order, which must execute at once.

  1. AAn order that remains in the system until the trader cancels it or the contract expires, subject to exchange limitsCorrect
  2. BAn order that must be executed immediately in full or cancelled
  3. CAn order that is valid only for the current trading session
  4. DAn order that is executed only at the closing price

Explanation

A GTC order stays active until the trader cancels it or the contract expires, within exchange-specified limits on validity. An IOC order is the one executed immediately and the unexecuted part cancelled, and a Day order lapses at the session end.

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