Day Order

What Does Day Order Mean?

A day order is a financial term that refers to an instruction to buy or sell a security within the same trading day. If the order is not executed by the close of trading, it is automatically canceled. Day orders are the most common type of order used in securities trading.

Insuranceopedia Explains Day Order

In the stock market, prices for buying and selling are volatile and can fluctuate throughout the trading day. This volatility is highlighted by the use of day orders. A day order is issued when it’s advantageous to buy or sell stocks within the same trading day, as the opportunity may no longer be favorable by the next day. If the order is not executed by the market close, it expires.