A regular Stop-Loss order is valid only for the day you place it. GTT keeps your stop-loss trigger standing — up to a year, or until it fires or you cancel it — so your protection doesn't lapse just because the market closed.
Why does this matter for stocks and options?
If you place a plain SL or SL-M order and it doesn't trigger by the end of the day, it's gone — you'd have to remember to place it again the next morning before the market moves. A GTT stop-loss stays active across days, so a position you're holding for more than a single session stays protected without you having to re-enter it every morning.
Why is this worth calling out for options specifically?
Options can move sharply on small changes in the underlying, and premiums can erode quickly from time decay alone. If you're not watching the position closely every day, a GTT stop-loss is what keeps a protective exit in place while you're away from the screen — a day-only SL order simply won't carry that protection into the next session.
Things to keep in mind
- GTT execution still isn't guaranteed — it's a trigger, not a promise of a fill at your exact price.
- If you exit the position through another order, remember to cancel the GTT too — it doesn't get removed automatically just because your position is gone.