What is a day order in stock trading?

The day order is a pivotal instruction used in stock trading. Understanding the uses and limitations of day orders can keep you from making costly mistakes that will undermine your investment returns. Let's review the basics now so you can use day orders with confidence. Image source: Getty Images.

Are day orders a good idea?

However, day orders can also be a bit more restrictive than other order types, as they only give you a single trading day to fill your order. If the stock you’re looking to buy or sell doesn’t move much during the day, your order might not fill at all. Plus, having to place a new order every day can be time-consuming if you’re an active trader.

Do day orders expire?

Day orders expire if not filled within the same trading day. Investors must monitor day orders since market shifts can affect desired transaction prices. Alternative order timings like GTC allow orders to extend beyond one day. Key findings are powered by ChatGPT and based solely off the content from this article.