What is an 'End of Day Order'

An end of day order is a buy or sell order requested by an investor that is only open until the end of the day.

BREAKING DOWN 'End of Day Order'

End of day orders can be compared to good 'til canceled (GTC) orders which are open for an undefined timeframe. End of day orders must be transacted by the end of a trading day regardless of the time that the order is placed. Many broker-dealers will default to an end of day order.

Order Options

Generally investors have two timeframes they can choose from for the execution of their trade order. End of day orders offer a specified timeframe and must be filled by the end of the trading day. Good ‘til canceled orders remain open indefinitely unless canceled by the investor. Both of these orders offer the full range of trade options to the investor. With either an end of day order or good ‘til canceled order, investors can choose from the following options:

Market order: A market order does not have a specified price. This order can be placed at the market’s be current rate for a specified security. These types of orders are typically executed within minutes during normal trading hours.

Limit order: Limit orders are primarily used when buying a security below its market price or selling a security above its market price. These orders will set a specified price to buy that is below the current market price or a specified price to sell that is above the current market price.

Stop order: Stop orders are primarily used to mitigate substantial losses on a security. A stop loss order is an order to sell that is initiated with a specified price that is below the market’s current price.

End of Day Order Considerations

End of day orders can be advantageous for a buyer because they do not have to continue following the order’s progress after the trading day has closed. Most market orders are typically placed immediately and therefore not a concern for end of day order cutoffs. End of day orders that are unexecuted for any reason will need to be re-entered again.

An end of day limit order frees an investor from the investment’s deduction in the future which allows them to place other trades. If an investor is seeking a specified price they may need to place a GTC order to wait for the price to be reached. This type of scenario is often associated with an investor’s risk management strategy and is best deployed as a GTC order. The GTC designation allows an investor to construct floors and ceilings for risk management purposes using limit and stop orders.

  1. Day Order

    An order to buy or sell a security that automatically expires ...
  2. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  3. Fill

    A fill is the action of completing or satisfying an order for ...
  4. Bracketed Buy Order

    Bracketed buy order refers to a buy order that has a sell limit ...
  5. Conditional Order

    A conditional order is an order that includes one or more specified ...
  6. Above The Market

    Above the market refers to an order to buy or sell at a price ...
Related Articles
  1. Investing

    Understanding Market Orders And Limit Orders

    A market order executes a transaction as quickly as possible at the present price. Immediacy is the main concern. A limit order is executed at or below a purchase or sale price. Price is the ...
  2. Trading

    Stop-loss or stop-limit order: Which order to use?

    While both can provide protection for traders, stop-loss orders guarantee execution, while stop-limit orders guarantee price.
  3. Investing

    Understanding Buy Stop Orders

    A buy stop order is an order to buy a stock at a specific price above its current market price.
  4. Trading

    Explaining Buy Limit Orders

    A buy limit order allows traders and investors to specify the price that they are willing to pay for a security, such as a stock.
  5. Investing

    When Using a Money Order Makes Sense

    Money orders are usually the least expensive way to send "cleared" funds to pay a bill (or traffic ticket). Here's how they work and what to watch out for.
  1. Why do limit orders cost more than market orders?

    Learn the difference between a market order and a limit order, and why a trader placing a limit order pays higher fees than ... Read Answer >>
  2. What's the difference between a stop and a limit order?

    A limit order is an order that sets the maximum or minimum at which you are willing to buy or sell a particular stock. With ... Read Answer >>
  3. 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 >>
  4. 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 >>
  5. What is the difference between a buy limit and a sell stop order?

    Understand the differences between the two order types, a buy limit order and a sell stop order, and the purposes each one ... Read Answer >>
  6. How do I place an order to buy or sell shares?

    Read a brief overview of how to open a brokerage account, how to buy and sell stock, and the different kinds of trade orders ... Read Answer >>
Hot Definitions
  1. Capital Asset Pricing Model - CAPM

    Capital Asset Pricing Model (CAPM) is a model that describes the relationship between risk and expected return and that is ...
  2. Return On Equity - ROE

    The profitability returned in direct relation to shareholders' investments is called the return on equity.
  3. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  4. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  5. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  6. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
Trading Center