Definition
A day order is a directive to buy or sell a security that automatically expires at the end of the trading session if not filled. This is the default order duration for most brokers. Day orders are useful when market conditions are relevant only for the current session or when investors want to reassess their strategy each day. If partially filled, the unfilled portion cancels at market close.
Example
At 10 AM, you place a day limit order to buy 100 shares at $50. If by 4 PM the stock never reached $50, the order expires and you need to re-enter it the next day if still interested.
FAQ
What is Day Order?
An order that expires at the end of the trading day if not executed.
Why is Day Order important?
Day Order helps investors evaluate trading mechanics and make more informed decisions.