Glossary
Day Order
An order that expires automatically at the end of the trading session if it has not been filled; the default at most brokers.
A day order is an instruction to buy or sell that is valid only for the current trading session. If it has not been filled by the close, the broker cancels it. "Day" is one of several time-in-force settings, and at most US brokers it is the default when you place a Limit order or stop order without choosing anything else.
How it works
A partially filled day order keeps whatever shares it bought; only the unfilled remainder is cancelled at the close.
Day versus other durations
- Good 'til canceled (GTC) stays open across sessions until filled or cancelled, though brokers usually cap it at 60 to 180 days.
- Fill or kill must fill completely and immediately or not at all.
- Immediate or cancel fills what it can at once and cancels the rest.
- Extended-hours settings let an order work in the Premarket trading or after-hours session. A standard day order usually covers only the regular 9:30 a.m. to 4:00 p.m. ET session, so check your broker's rules before assuming an order placed at 6 p.m. will work overnight.
Why it is the default
Day orders limit the damage from stale instructions. Overnight news can change a stock's price sharply, and an old limit order left open could fill at a price you would no longer accept. Market orders are almost always day orders because they are meant to fill right away.