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Paul Tracy

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Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated September 30, 2020

What is a Good This Month?

Good this month refers to a type of trading order is automatically canceled if it is not filled by the end of the month in which the client makes the order.

How Does a Good This Month Work?

For example, let's assume an investor wants to sell 100 shares of Company XYZ at $25 per share or better. She places a "good this month" order with her broker on the 20th of the month. The broker has the rest of the month to sell the shares at $25 per share or higher. If he cannot do so, the order expires at the end of the last trading day of the month.

Why Does a Good This Month Matter?

A good this month order is a type of limit order. Limit orders in general can limit losses and lock in profits by giving investors some sort of a specified purchase or sale price. This makes them very useful in low volume or high volatility markets. 

It is important to note that a limit order will not be executed if the market price does not meet the order requirements. This can be troubling for investors who need immediate liquidity.

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