Quick definition An order that remains active during the current trading session only. Any unfilled quantity is automatically cancelled at the close of the session. What it is A day order is the default time-in-force for most orders submitted during the trading day. The order executes during the session if liquidity is available. At the close of the session, any unfilled portion is automatically cancelled. The order does not carry over to the next trading session. Why it matters Day orders prevent orders from lingering on the book indefinitely. A trader submits a day limit order knowing that if the price does not reach the specified level today, the order will be cancelled automatically and will not execute in a future session without the trader's reconfirmation. Day Order versus Good-til-Cancelled (GTC) A GTC order persists across multiple trading sessions until cancelled by the trader. A day order expires at the close of the current session. Day orders require less active management but may result in missed opportunities if a limit order would have filled in a later session. Practical example A trader submits a day limit order to sell at $52.00. The current price is $50.00. The order rests on the book during the session. At 4:00 PM ET (the close of the US equity market), any unfilled quantity is automatically cancelled. If the trader still wants to offer shares at $52.00 the next day, the trader must resubmit the order. Session definition For equities, a day order expires at the close of the regular trading session (typically 4:00 PM ET on US exchanges). For futures, the day order period depends on the contract and the exchange. Always verify the session definition for the specific market. Default time-in-force Most brokers default to day orders unless the trader explicitly specifies GTC or another time-in-force. Always confirm the time-in-force setting when placing an order, as an unintended day order might be cancelled when the trader expected it to persist. See also - Good-til-cancelled (GTC) - Good-til-date (GTD) - At-the-open (OPG) - Market-on-close (MOC)
