Day Order - Trading Instruction

Day Order Definition

A day order is a buy or sell instruction to a broker that are valid for one trading day.  Day orders are the default order type for most trading platforms and are the most common order type.  When a trader places a day order, the order is routed through the broker and is active until the end of the trading session.  In the U.S. markets, any order placed during the regular trading session will expire at 4 pm.  However, if a day order is placed after 4 p.m., it will be active until the end of the after-hours trading session.

Why Use Day Orders?

Day orders are used by traders that are looking to open a position during a particular session, but do not want the inherited risk of leaving an order in the market indefinitely.  This order type is popular amongst active traders.
Tim Ord
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