Time in Force Explained: Boost Your Trading Strategy in 2025

In the fast-paced world of share trading, a small setting can have a big impact on your results. ‘Time in Force’ isn’t just a technical detail—it’s a critical instruction that can define whether your trades are executed, expire, or hang in limbo. As Australia’s markets evolve in 2025, understanding how Time in Force works is more important than ever for both new and seasoned investors.

What is Time in Force?

Time in Force (TIF) refers to the duration for which a trading order remains active before it is executed or expires. Every time you buy or sell shares on the ASX or through online brokers, you’re asked to choose a TIF setting—sometimes without even realising it. The right choice can mean the difference between catching a market dip or missing out entirely.

The most common Time in Force instructions in Australia include:

• Day Order: Expires at the end of the trading day if not filled.
• Good Till Cancelled (GTC): Remains active until you cancel it, or it is filled.
• Fill or Kill (FOK): Must be filled immediately in its entirety or cancelled.
• Immediate or Cancel (IOC): Fills as much as possible immediately; the rest is cancelled.
• At the Open/At the Close: Executes only at the market open or close, or not at all.

These choices might seem technical, but they’re the backbone of trade execution, risk management, and even compliance with the latest ASX microstructure rules.

Recent ASX & Policy Updates Impacting TIF in 2025

Australia’s trading landscape is constantly evolving. In early 2025, the ASX rolled out enhancements to its matching engine, ASX Trade, with a focus on improved transparency and faster order processing. One key change: tighter cut-off times for Day Orders, now auto-expiring at 4:10pm AEST, aligning with the market’s new closing auction timetable. This update reduces the risk of accidental overnight exposure for retail traders, especially as after-hours trading continues to expand.

Additionally, ASIC’s 2024–2025 Market Integrity Report highlighted risks around GTC orders lingering in volatile markets. Some brokers now default to shorter TIF windows to protect clients from unforeseen price swings, while sophisticated investors are leveraging advanced TIF strategies—including algorithmic slicing with IOC and FOK—to manage execution risk during high-volume events like earnings releases.

For ETF and small-cap traders, these changes can mean the difference between a smooth fill and an order that sits unexecuted for days, especially as liquidity varies throughout the trading session.

Using Time in Force to Your Advantage

Choosing the right TIF isn’t just about convenience—it’s about matching your order’s lifespan to your trading goals. Here’s how to make TIF work for you in 2025:

• Day Traders: Stick with Day Orders or IOC/FOK to avoid accidental overnight positions. With the ASX’s tighter settlement cycles (T+1 for equities), precision matters more than ever.
• Long-term Investors: GTC can be useful for patient entry or exit at target prices, but monitor your orders regularly—especially after policy shifts or market volatility.
• Event Traders: Use FOK during market open/close or earnings announcements to ensure full execution or none at all, avoiding partial fills in volatile moments.
• ETF & Low-Liquidity Shares: Consider At the Open/Close instructions to tap into peak liquidity, reducing slippage.

Pro tip: Many brokers now offer custom TIF settings, letting you specify expiry down to the minute. This can be a game-changer during events like ASX index rebalances, where timing is everything.

Real-World Example: Avoiding a Costly Mistake

Consider Sarah, a Sydney-based investor, who placed a limit buy order for a tech stock before the 2025 ASX closing auction. She selected a GTC order, hoping to catch a price dip. However, after an unexpected earnings miss, her order executed the next morning at a much lower price than anticipated. If Sarah had used a Day Order or At the Close TIF, she could have avoided an unintended fill at a volatile moment. This underscores why TIF matters—not just for professionals, but for every Australian investor.

Conclusion

In 2025’s dynamic markets, Time in Force is more than a set-and-forget detail—it’s a vital lever for controlling risk, maximising opportunity, and staying in step with the latest ASX rules. By understanding the nuances of TIF and keeping up with ongoing policy changes, you can sharpen your trading edge and avoid costly errors.