Day Order

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DEFINITION of 'Day Order'

An order to buy or sell a security that automatically expires if not executed on the day the order was placed. A day order is an order that is good for that day only. If it is not filled it will be canceled, and it will not be filled if the limit or stop order price was not met during the trading session. It is one of several different order duration types that determine how long the order will be in the market before it is canceled. For example, a "good till canceled (GTC)" order will remain active until it is manually canceled, while an "immediate or cancel (IOC)" order fills all or part of an order immediately and cancels the remaining part of the order.

INVESTOPEDIA EXPLAINS 'Day Order'

Many trading platforms have "day orders" (often appearing simply as "day") as the default order duration. Unless the trader specifies a different time frame for the expiration of the order, any order to buy or sell a security would be a day order by default. These orders are only good during the current trading day, and are automatically canceled at the end of the day if they have not yet been filled. Most trading platforms support a wide variety of duration types, including those that are based on an action (such as Fill-Or-Kill) and durations that are based on a specified time period: one, three or five minutes.

RELATED TERMS
  1. Limit Order

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  2. At Limit

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  3. End Of Day Order

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  4. Order

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  5. Stop Order

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  6. Market-On-Close Order - MOC

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RELATED FAQS
  1. What do the numbers that follow the bid and ask numbers in stock quotes represent?

    When looking at stock quotes, there are numbers following the bid and ask prices for a particular stock. These numbers usually ... Read Full Answer >>
  2. What is a GTEM order?

    GTEM stands for "good 'til extended market". This is a type of duration order that investors can place with their brokers, ... Read Full Answer >>
  3. Why does my broker allow me to enter only day orders for short selling?

    Put simply, brokerage firms restrict short sales to day orders because of the complexity of the short sale transaction and ... Read Full Answer >>
  4. How do day traders capture profits from the difference between bid and ask prices?

    Day traders capture profits from the difference between bid and ask prices by scalping stock. Sensing that a stock is going ... Read Full Answer >>
  5. Should I enter a limit order to buy a position with a bid and ask that are far apart?

    You face the risk of losing the spread in a security with a bid and ask that are far apart when you enter a market order. ... Read Full Answer >>
  6. When should I use a trailing stop order?

    Trailing stop orders are used to limit losses and protect profits on a stock position. You should use trailing stop orders ... Read Full Answer >>
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