Listen to a Business English Dialogue About A good till canceled order
Gabrielle: Hi Julia, do you know what a good till canceled order is?
Julia: No, I don’t. What is it?
Gabrielle: A good till canceled order is a type of order placed with a broker to buy or sell a security at a specified price that remains in effect until it is executed or canceled by the investor.
Julia: Oh, I see. So, it’s like setting up a standing instruction for the broker to execute the trade whenever the specified conditions are met?
Gabrielle: Exactly. It’s a convenient way for investors to automate their trading strategies without having to continuously monitor the market.
Julia: Are there any limitations or risks associated with using good till canceled orders?
Gabrielle: One risk is that the market conditions may change, and the specified price may never be reached, leaving the order open indefinitely.
Julia: I see. So, investors need to regularly review and update their good till canceled orders to ensure they’re still relevant?
Gabrielle: Yes, that’s a good practice. It’s important for investors to monitor their orders and adjust them as needed based on changing market conditions and investment objectives.
Julia: Can investors place good till canceled orders for any type of security?
Gabrielle: Yes, generally. Good till canceled orders can be placed for stocks, bonds, options, and other securities traded on the market.
Julia: I understand. So, it’s a flexible tool that investors can use across different asset classes?
Gabrielle: Exactly. Good till canceled orders provide investors with flexibility and convenience in managing their investment portfolios.
Julia: Thanks for explaining, Gabrielle.
Gabrielle: No problem, Julia. Good till canceled orders can be a useful tool for investors looking to automate their trading strategies and take advantage of market opportunities.