Day Order

What is a Day Order? 

A day order is an order to buy or sell a security that expires at the end of the trading day if it is not executed.

Explanation

If the order is not filled by the end of the trading day, it is automatically canceled. This type of order is used to limit the exposure to market fluctuations.

Practical Example of Day Order

An investor places a day order to buy 100 shares of XYZ stock at $30. If the stock does not reach $30 by the end of the day, the order is canceled.

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