Day Order

A day order is an order to buy or sell a security that automatically expires at the end of the trading day if it hasn't been executed. This is the default order type on most brokerage platforms, meaning unless you specify otherwise, your orders will only be active for the current trading session. Day orders are appropriate for traders who want to take advantage of current market conditions without leaving orders open indefinitely. If you place a limit order hoping to buy at a specific price during today's session, a day order ensures the order won't execute unexpectedly days later when conditions may have changed. The automatic expiration of day orders provides a natural checkpoint. Each new trading day, you can assess market conditions fresh and decide whether to re-enter orders. This prevents the problem of forgotten orders executing at inopportune times and forces regular review of trading plans. For most casual investors, day orders are perfectly adequate. If you're simply buying shares of a stock you want to own long-term, a day market order gets the job done immediately. Even day limit orders work well when you have specific short-term price targets. The main disadvantage is that day orders require re-entry if not filled. If you want to buy a stock at $50 but it's trading at $55, you'd need to place a new order each day until your limit is hit or you change your mind. For longer-term price targets, GTC (Good Till Canceled) orders may be more convenient. Understanding the difference between day orders and GTC orders, and knowing which is appropriate for each situation, is basic trading literacy. Most platforms make it easy to toggle between order durations when placing trades, so you can choose the right type for your specific objective.