What is a Day Order?
Day orders are trading instructions issued by an investor to a broker. The orders are executed during the same trading day as issued by the investor. A day order may be configured as a buy order or a sell order. In the event that the day order is not executed during the same trading session or day, the order becomes null and void. With most markets, every order is understood to be a day order unless specified by the investor to be otherwise. This approach makes it necessary for brokers to execute orders as quickly as possible. For instance, an investor submits a buy order to his or her broker early in the trading day. The broker will usually execute the order before noon, thus allowing the investor to maximize the benefits from the transaction. Depending on the influx of orders from different clients, the buy order may be processed in a matter of minutes. The benefits of treating each received order as a day order are realized by both the investor and by the brokerage processing the or
Good Till Cancelled A good till cancelled order is an order that will stay in the system until it is either executed or you cancel it. Some brokerages will allow investors to place a time limit on a good till cancelled order. If you do place a time limit the order will be deleted when its time runs out.
