Stock Exchange: Order Validities

In two other infos, I have already dealt with the issue of order supplements when buying or selling securities. In addition to these supplements, we also have to specify the validity of an order when buying or selling papers. This means, we have to define how long an order should be valid or how long the order should wait for its execution before it is deleted without an execution.

We distinguish the following types of order validities:

• DAY/GFD (Good for Day): This order is valid for the entire day on which it was submitted. At the end of the day it is automatically deleted and the next day it is no longer valid. It does not matter whether the order was submitted in the moring or in the evening of that day.
• GTC (Good till cancelled): This order remains valid until it has been executed or canceled. This can happen within a day, month or year. However, in the most cases of GTC orders, you specify a date on which the order is canceled, if it could not be executed till this time.
• Ultimo: An Ultimo order is remaining valid up to the end of the current month and will be deleted if it was not executed until then. It does not matter whether the order was submitted at the beginning or the end of the month. For the next first it is deleted.