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What is Good This Week?

Updated on June 18, 2024 , 212 views

A Good This Week (GTW) order is one that is valid until the completion of the week in which it was issued. The order will be automatically cancelled if it is not executed before the end of the week. GTW orders are uncommon since they are rarely available on cheap brokerage platforms.

Good This Week

Let's say it's Thursday, and an investor feels a Monday news release would cause a certain stock to increase. A GTW order can be placed by an investor who wants to acquire the shares before the news is announced. The order would therefore be valid until the end of Thursday, but it would expire if it was not performed before then. If the investor does not notice that the order was not fulfilled, he or she may miss out on the expected gain the next week.

How Does it Work?

Typically, a GTW contingency is attached to a limit or stop order. Full-service brokers are more likely to provide them since they allow for more customisation of their customers' deals. GTW provides a medium ground between orders that are valid for the current trading day and orders that are valid for a longer time. Investors who utilise GTW orders, on the other hand, must keep in mind that their order must not be out of sync with significant events that might impact the price of the securities they are trading.

Since GTW orders are not widely offered by brokers, most traders are unlikely to have used them previously. Market orders, limit orders, and Good 'Til Canceled (GTC) orders are the most common types of orders offered by most brokers. GTC orders are similar to GTW orders in that they will stay live forever unless the investor cancels or executes them.

Examples of Good This Week

Assume you're a stock market investor with a full-service brokerage account who buys individual stocks. Market orders, limit orders, GTW orders, and GTC orders are just a few of the order types available to you as a full-service customer. Based on an expected product release, you are confident that ABC Company's stock will climb in the near future. You decided to purchase ABC stock in preparation for this announcement, but you're not sure how to go about it.

When you consider your alternatives (order types), you realise that a market order entails identifying the number of ABC shares you want to buy and then buying them at the best available price. However, if market sentiment shifts unexpectedly around the time you place your purchase, you may find yourself spending substantially more than you anticipated.

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Limit orders, on the other hand, let you define a maximum price for the stock that you are ready to pay. That limitation, on the other hand, makes it less likely that the order will be carried out.

Finally, you think about GTW and GTC orders. GTW orders, as you recall, function as market orders but only endure until the end of the week in which they are placed. On the other hand, GTC orders have no specified expiration date; they might theoretically remain much longer.

After considering all of these factors, you decide to place a GTW order and make a note in your calendar to double-check that the transaction was completed on the last day of the week.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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