Why Is the ‘Good-Til-Cancelled’ (GTC) Time-in-Force Not Suitable for Managing Short-Term Slippage?

A GTC order remains active until it is either executed or manually cancelled by the trader. Because it can remain on the order book for an extended period, the market conditions, liquidity, and volatility can change significantly.

This extended exposure increases the risk that when the order is finally executed, the market price has moved substantially, resulting in a large, unexpected slippage, either positive or negative. It does not control for short-term price fluctuations.