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Day Order

Moneyzine Editor
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Moneyzine Editor
1 mins
January 15th, 2024
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Day Order

Definition

The term day order refers to broker instructions to buy or sell a security that automatically expires at the end of the trading day if not executed. Unless specified by the investor, the default orders to buy and sell stocks at most brokerage houses are day orders.

Explanation

A day order is typically used in the context of buying or selling shares of stock. A day order instructs the broker to buy or sell a predetermined amount of securities at a predetermined price, or cancel the transaction at the end of the trading day.

A day order is oftentimes used in conjunction with a stop or limit order, since the investor is looking for a specific trading price point (unlike a market order). If a day order is not filled in the current trading session, it will be automatically canceled. As is the case with Good-Til-Canceled and Immediate-or-Cancel, a day order specifies the term of the order.

Related Terms

  • All-or-None Orders (AON)
    The term All-or-None order refers to broker instructions to buy or sell a quantity of securities in their entirety, or none at all. If an All-or-None order cannot be executed immediately, it remains open until it is executed or is closed at the end of the trading day.
    Moneyzine Editor
    Moneyzine Editor
    January 5th, 2024
  • Fill-or-Kill Orders (FOK)
    The term Fill-or-Kill refers to broker instructions to buy or sell a security immediately, and in its entirety, or cancel the order. From a practical standpoint, a Fill-or-Kill order specifies the instruction will remain active for several seconds before being filled or canceled.
    Moneyzine Editor
    Moneyzine Editor
    January 18th, 2024
  • Good-Til-Canceled Orders (GTC)
    The term Good-Til-Canceled refers to broker instructions to buy or sell a security at a fixed price, and the order will remain active until the investor cancels it or it is filled. From a practical standpoint, a Good-Til-Canceled order specifies the instruction will remain active even if it is not filled on the same trading day.
    Moneyzine Editor
    Moneyzine Editor
    January 19th, 2024
  • Immediate-or-Cancel Orders (Accept Order)
    The term Immediate-or-Cancel refers to broker instructions to buy or sell a security instantly, or cancel the order. From a practical standpoint, an Immediate-or-Cancel order specifies the instruction will remain active for several seconds before being filled or canceled.
    Moneyzine Editor
    Moneyzine Editor
    January 19th, 2024
  • The term stop order refers to instructions sent to a broker to buy or sell securities once the security reaches a specified price. When the price point on a stop order is reached, it is converted to a market order.
    Moneyzine Editor
    Moneyzine Editor
    September 21st, 2023
  • The term National Best Offer refers to the lowest available ask price, which is a consolidated value from all of the national stock exchanges. The National Best Offer is the lowest price sellers are willing to accept for a security such as a stock.
    Moneyzine Editor
    Moneyzine Editor
    September 20th, 2023
  • The term National Best Bid refers to the highest available bid price, which is a consolidated value from all of the national stock exchanges. The National Best Bid is the maximum price buyers are willing to pay for a security such as a stock.
    Moneyzine Editor
    Moneyzine Editor
    September 20th, 2023
  • Market Order (Unrestricted Order)
    The term market order refers to instructions sent to a broker to buy or sell a security immediately at the best available price. Since there are no restrictions on the selling or purchase price of the security, a market order is oftentimes immediately executed.
    Moneyzine Editor
    Moneyzine Editor
    January 24th, 2024
  • Limit Order
    The term limit order refers to instructions sent to a broker to buy or sell securities at a specific price or better. Since a limit order is not a market order, there is no guarantee the transaction will occur.
    Moneyzine Editor
    Moneyzine Editor
    January 23rd, 2024

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