Day Order: How Traders Set One-Day-Only Instructions for Their Trades

When you place a trade in the stock, forex, or futures market, you can decide how long your order should stay active.
A Day Order is one of the most common types — it means your order is valid only for the trading day on which it’s placed.
If the trade doesn’t get executed by the market’s close, the order is automatically cancelled.

Core Idea

A Day Order tells your broker, “Execute this trade today if possible — otherwise, cancel it.”
It’s designed for traders who want to act on short-term opportunities without leaving pending orders overnight that could be triggered by unexpected price moves, news, or volatility.

In Simple Terms

Think of a Day Order like a same-day delivery request.
If it doesn’t happen today, the request expires automatically.
You won’t wake up tomorrow to find that your order was executed while you were asleep — it simply disappears at the end of the session.

Example

You place a buy limit order for Apple shares at $180 during Monday’s trading session.

If Apple’s price reaches $180 on Monday, your order is executed.

If the stock stays above $180 all day and the market closes, your order expires automatically.
If you still want to buy, you’ll need to place a new order on Tuesday.

Real-Life Application

Day Orders are widely used in:

Day trading — where traders close all positions before the session ends.

Short-term strategies — when market conditions change quickly.

Risk management — to prevent trades from being executed overnight during foreign market hours.

Many online platforms set “Day” as the default order duration, unless you specifically choose otherwise (e.g., “GTC – Good ’Til Cancelled”).

Common Misconceptions and Mistakes

Assuming a Day Order carries over to the next session: It doesn’t — it expires at the end of the same trading day.

Confusing it with Good-’Til-Cancelled (GTC): GTC orders remain active until filled or manually cancelled.

Forgetting about extended hours: Some brokers treat the “day” as regular hours only (e.g., 9:30 AM–4:00 PM), while others include after-hours trading — always check your broker’s policy.

Leaving important trades unmonitored: If a stock barely misses your price before the close, the order will vanish, and you’ll need to re-enter it the next day.

Related Queries Traders Often Search For

What happens if a day order is not filled?

How is a day order different from a GTC order?

Can day orders execute during after-hours trading?

Why do brokers set day order as default?

Is a market order the same as a day order?

Summary

A Day Order is a trading instruction that stays valid only for one trading day.
If not executed by the market’s close, it automatically expires, helping traders control timing and avoid overnight exposure.
It’s simple, safe for short-term traders, and one of the most common order types in all financial markets.