What is a day order?
A day order is an instruction to buy or sell that stays active only for the trading day on which it was placed.
If the order is not filled by the time the market closes, it is automatically cancelled rather than carried over to the next session.
In simple terms, a day order expires at the end of the day if it has not been executed.
How a day order works
When you place a day order, you set the conditions for a trade, such as a limit price. The order remains live and can be filled at any point while the market is open. If the market never reaches your conditions before the close, the order simply lapses. This automatic expiry means you do not have to remember to cancel unfilled orders, which helps keep your open orders tidy.
Day order compared with good till cancelled
| Feature |
Day order |
Good till cancelled |
| Stays active for |
One trading day |
Until filled or cancelled |
| Expiry |
At market close |
No fixed expiry |
| Best for |
Short-term views |
Longer-term targets |
When traders use day orders
-
Reacting to a price level expected to be reached that day
-
Trading around a scheduled news release
-
Avoiding orders carrying over into unexpected overnight moves
-
Keeping tight control over active orders
Choosing a day order over other durations
A day order suits traders who want an instruction to apply only for the current session and prefer not to leave orders working unattended. It contrasts with longer-dated instructions that stay active for days or weeks. Using a day order can help avoid being filled on stale terms after conditions change overnight, though it also means an order may need re-entering the next day if the chosen price is never reached. Some platforms treat a day order as the default setting, so it is worth checking the duration before confirming an order rather than assuming it will carry over.
What happens if a day order is not filled
A day order does not protect you from gaps or fast moves during the session, and it will not act once the market has closed. Traders who want an order to persist across several sessions need a different order type. It is also worth checking your platform’s definition of the trading day, since session times vary between markets and brokers.
A day order in action
Picture a trader who sets a day order to buy a stock at a specific price before the market opens. If the price is reached during the session, the order fills. If it is not, the order simply expires at the close and does not carry into the next day.
Putting a day order to work
The day order is one of the most common order types because it matches the way many traders think in single sessions. Knowing exactly when an order expires helps you plan entries and exits with more confidence, while keeping in mind that no order type removes the underlying risk that prices can move against you.
Risk Warning:Trading CFDs involves significant risk and may not be suitable for all investors. Losses can exceed your initial deposit. Please ensure you fully understand the risks involved before trading.
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