A day order is when a trader informs their broker to buy or sell a financial [instrument] at a predetermined price while putting an expiry date at the close of the day. If this order is not triggered by the end of the day, it is canceled and removed from pending orders.
Day orders are good for those who will be away from the screen but are not interested in having their orders pending for more than the same day. Again, this is highly dependent on the trader’s strategy.
Key takeaways:
- A day order is a trading order that expires at the end of the trading day.
- Good for day is another term for a day order.