In the share market, “VTC” stands for Valid Till Canceled. This feature allows traders to place buy or sell limit orders on specific stocks, specifying a time period for which the order remains active. If the stock reaches the target price during this period, the order is executed automatically. If not, the order will be canceled after 45 days.
Key Features of VTC Orders:
VTC orders can be placed in both cash and margin modes, covering equity and futures segments. Investors and traders often use this type of order when they have a particular target price in mind and want to give the market more time to reach it. One of the main benefits of VTC orders is that they eliminate the need to repeatedly place the same order if it doesn’t get executed right away.
How Does a VTC Order Work?
A trader submits a VTC order by specifying the stock, target price, and quantity of shares. The order stays active until the stock reaches the specified price or the trader cancels it manually. If the market price matches the trader’s conditions during the active period, the order is automatically executed.
