Day Order

A day order is the type of order to buy or sell a stock at a specified price level. This order expires automatically at the day’s close if it does not get executed the day it is placed.

Almost all orders placed by the trader are considered day orders. Sometimes, brokerage firms contact traders the day after they have placed the order to ask if they would like to renew it and make it active for the second day.

To place a day order, traders are required to set parameters for that day, and if met, the order will get filled. On the other hand, if these parameters are not met during that trading day, the trader will not buy/sell the stock. 

For example, if you place a day order to purchase 100 shares at £10, and the shares do not meet that figure by the end of the day, the order will not get filled. The same applies to selling, meaning that the prespecified parameters must be met to complete the sale.

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