Day Order

What is a 'Day Order'

A day order is 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.

BREAKING DOWN '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. Immediate Or Cancel Order - IOC

    An order to buy or sell a security that if not immediately filled, ...
  2. Good This Month - GTM

    A limit order to buy or sell a security that remains in effect ...
  3. Canceled Order

    1. A previously submitted order to purchase or sell a security ...
  4. End Of Day Order

    A buy or sell order that specifies a price for the security, ...
  5. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  6. Open Order

    An order to buy or sell a security that remains in effect until ...
Related Articles
  1. Investing

    How To Start Trading: Order Types

    The types of orders you use can have a large effect on your trading performance, so understanding the different order types is important to your success.
  2. Professionals

    Types of Securities Orders

    Securities Orders
  3. Professionals

    Orders

    Orders
  4. Trading Strategies

    Simulator How-To Guide: Cancelling Orders

    Depending on the order type and the time of day, a player may have the capability to cancel an order from being executed. Please realize that limit and stop orders can always be canceled prior ...
  5. Professionals

    Other Types Of Orders

    There are several other types of orders that an investor may enter. They are: All or none (AON) Immediate or Cancel (IOC) Fill or Kill (FOK) Not Held (NH) Market on Open / Market on Close All ...
  6. Professionals

    Other Types Of Orders

    There are several other types of orders that an investor may enter. They are: All or none (AON) Immediate or Cancel (IOC) Fill or Kill (FOK) Not Held (NH) Market on Open / Market on Close All ...
  7. Forex

    Entering A Trade

    The importance of executing the correct orders
  8. Options & Futures

    Brokers and Online Trading: Accounts And Orders

    Types of Accounts Depending on what type of securities you hold, there are four major choices you have when opening an account: Cash Account: The basic account where you deposit cash to buy ...
  9. Professionals

    TYPES OF ORDERS

    Order Execution Most customer orders, which are market orders or executable limit orders, will be routed electronically to the trading post for automatic execution. The electronic system bypasses ...
  10. Professionals

    Types Of Orders

    Investors can enter various types of orders to buy or sell options. Some orders guarantee that the investor’s order will be executed immediately. Other types of orders may state a specific ...
RELATED FAQS
  1. How can I use a buy limit order to buy a stock?

    Learn how a buy limit order is used by an investor who wants to buy a stock at a certain price, and understand how limit ... Read Answer >>
  2. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
  3. What is the difference between a buy limit and a stop order?

    Learn the difference between buy limit orders and stop orders, including stop loss orders, and understand the risks of the ... Read Answer >>
  4. What are the advantages of a limit order over a market order?

    Understand the functional differences between a limit order and a market order and the respective advantages and disadvantages ... Read Answer >>
  5. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  6. How do you know if a trade placed to a broker is confirmed?

    Learn how to check if trades placed with brokers online or over the telephone have been filled and confirmed. Explore different ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  5. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  6. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
Trading Center