Key Takeaways
- Order expires at week's end if not executed.
- Used for short-term weekly trading strategies.
- Combines with limit or stop orders.
- Limits exposure compared to Good Till Canceled orders.
What is Good This Week (GTW)?
Good This Week (GTW) is a type of trading order that remains active only until the end of the current trading week, automatically expiring if not executed by Friday's close. This order type is ideal for traders seeking short-term market opportunities without committing beyond the week.
GTW contrasts with orders like day orders that expire after one session and differs from immediate or cancel orders that require instant execution or cancellation.
Key Characteristics
GTW orders have distinct features that cater to weekly trading strategies:
- Time-limited: Valid only through the current trading week and expire automatically at week's end.
- Order Types: Often combined with limit or stop orders to specify exact price conditions for execution.
- Execution window: Allows execution any time market conditions meet criteria before Friday's close.
- Risk management: Limits exposure by avoiding multi-week commitments common in call option strategies or other long-term positions.
- Flexibility: Supports tactical moves in volatile markets without daily re-entry like standard day orders.
How It Works
To use a GTW order, you place an instruction with your broker specifying the order as "good this week," often alongside a limit price to control costs. Your broker monitors the market through the week, executing the order if conditions match before Friday's close.
If the order is not filled by then, it cancels automatically without further action, preventing unintended carryover into next week. This contrasts with orders like Good Till Canceled (GTC), which remain active indefinitely until filled or manually canceled.
Examples and Use Cases
GTW orders are practical for traders capitalizing on short-term price movements or news events. Here are typical scenarios:
- Airlines: A trader places a GTW limit order on Delta shares expecting a mid-week price dip, aiming to buy if the price hits a target before Friday.
- Growth stocks: Investors might use GTW orders to capture short-term gains from volatile growth stocks without long-term exposure.
- Index funds: You could apply GTW orders when buying into low-cost index funds during specific weekly market trends.
Important Considerations
While GTW orders offer weekly flexibility and reduce the need for daily order re-entry, they carry risks such as non-execution in rapidly fluctuating markets. Missing execution means you may need to reassess your position the following week.
Also, partial fills can occur, potentially leaving you with unintended exposure. It's crucial to understand the fair market value dynamics for your target securities and confirm your broker supports GTW orders before use.
Final Words
Good This Week (GTW) orders provide a flexible way to manage short-term trades without lingering exposure beyond the week. To make the most of GTW, review your weekly market outlook and adjust your orders accordingly before Friday’s close.
Frequently Asked Questions
Good This Week (GTW) is a type of trading order that stays active only until the end of the trading week in which it is placed. If the order isn't executed by Friday's close, it automatically expires, helping traders limit their exposure to short-term market movements.
Unlike GTC orders that remain active indefinitely until filled or canceled, GTW orders expire at the close of the trading week if not executed. This makes GTW ideal for traders targeting weekly price changes without committing beyond that period.
Yes, traders often combine GTW orders with limit or stop orders to specify exact price levels for buying or selling. The order will execute only if the market reaches those price criteria before the week's end.
GTW orders offer flexibility for weekly trading strategies, save time by avoiding daily re-entry, and limit exposure compared to longer-lasting orders. They also help protect against overpaying or underselling by allowing price limits.
Yes, GTW orders may not execute if market prices don't meet the set criteria within the week, potentially causing missed opportunities. In volatile markets, rapid price changes can also prevent order fulfillment or lead to partial fills.
Traders with short-term strategies aiming to capitalize on weekly price swings often benefit from GTW orders. They are particularly useful for those who want to avoid constant monitoring and limit exposure to market fluctuations within a single week.
While one source describes GTW as a stock performance metric comparing Friday closes week-over-week, the dominant and widely accepted meaning refers to a type of trading order that expires weekly. Investors should confirm broker-specific definitions.
No, GTW orders automatically expire at the end of the trading week and do not renew. Traders must place a new order for the following week if they want to continue targeting similar price levels.
