A Good-for-Day order, commonly known as a day order, is a trading instruction that remains active only during the current trading session and automatically expires if not executed by market close. This order type provides precise control over execution timing and prevents trades from occurring at potentially unfavorable prices during after-hours sessions or the following day’s opening.

Day orders are the default order duration on most trading platforms and are particularly useful for active traders who monitor markets closely. Unlike Good-Till-Canceled orders that remain active until filled or manually canceled, day orders eliminate risks associated with forgotten orders executing at inappropriate times or changed market conditions.

Real-world example: A day trader places a good-for-day order to sell 1,000 shares of Amazon at $3,150, knowing the order will automatically cancel at 4 PM if not filled, preventing execution during volatile after-hours trading.