Good Til Date (GTD)
An order that terminates at a specific date.
This is a conditional maturity trigger that can be attached to most order types. It primarily operates by introducing a deadline by which the order is closed, irrespective of whether it is filled, or open.
The main benefit of this order type is that it closes the trade by a certain date, so if the trader is operating on a fixed deadline due to bureaucratic, operational, or personal reasons, this is an ideal means by which they can limit their market exposure from a certain date onwards. Worth mentioning that this fixed cut-off also means that this order can be used to manage open positions for portfolios, as the unused assets can be returned to the trade automatically.
The drawback is that since the trigger to close the order is dependent on time and not market conditions, it may close when a trader might have preferred to keep their order active.
How it is used
Mateusz wishes to purchase $1,000 worth of HOSKY as they recently announced an airdrop happening next Tuesday to all token holders. Mateusz thinks he can get a better deal than the current price, so he places a buy order at $1, which is 5% lower than the current trading price. As he’s primarily interested in the airdrop utility, he sets the maturity to be on Monday - this way if the HOSKY price drops to Mateusz’s desired level, the order will execute, but if it’s not filled by the start of the week, the order will automatically close.
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