Basic Terms4 min read

What is a Day Order? Orders That Expire at End of Trading Session

A day order is any order placed on the stock exchange that remains valid only for that particular trading session. If the order is not executed by the time the market closes at 3:30 PM, it is automatically cancelled. The next morning, if you still want to buy or sell at that price, you have to place a fresh order.

When you walk into a shop and tell the owner you want a specific item at a specific price, and the owner says he will check but only until closing time, that is how a day order works. If the deal does not happen before the shop closes, your request is gone. You come back tomorrow and ask again.

How is a day order different from other order types?

Order Type	How Long It Stays Active
Day Order	Until 3:30 PM that day only
IOC (Immediate or Cancel)	Executes instantly or cancels immediately
GTC (Good Till Cancelled)	Stays for days or weeks until cancelled or filled
GTT (Good Till Triggered)	Stays dormant until trigger price is hit, can be weeks or months
AMO (After Market Order)	Placed after hours, submitted at next day's open

Why are most orders day orders by default?

On Indian exchanges, most orders are day orders by default unless you specifically choose otherwise. This protects investors from forgetting about old orders that might execute at prices they no longer consider appropriate. Markets change fast, and an order that made sense on Monday might not make sense on Thursday.

For investors who want their orders to stay active beyond a single day, GTC and GTT order types are available on many broker platforms.

What happens to unfilled day orders at market close?

At 3:30 PM, all unfilled day orders are automatically cancelled by the exchange. No charges apply for cancelled orders. Your funds or margin that were blocked for the order are released immediately. The next trading day starts with a clean slate.

Investments in securities market are subject to market risks. This article is for educational purposes only.

Frequently Asked Questions

My day order was partially filled. What happens to the remaining quantity?

If a day order is partially filled, the executed portion is completed as a trade. The remaining unfilled quantity stays active until 3:30 PM. If it does not get filled by close, the remaining quantity is cancelled. You are charged brokerage only on the portion that was actually executed.

Can I cancel a day order after placing it?

Yes. You can cancel or modify a day order at any time during the trading session as long as it has not been executed. Once a trade is executed, it cannot be reversed through cancellation. Modifications to price and quantity are processed instantly on most broker platforms.

Do I need to place a new day order every morning if I want to buy at a specific price?

Yes, unless your broker offers GTC or GTT orders. With a standard day order, you need to log in every morning and place a fresh order at your desired price. GTT orders solve this by keeping your price instruction active for days or weeks without requiring daily manual entry.

Is there a limit on how many day orders I can place?

There is no fixed limit on the number of day orders. However, each order requires margin or funds in your account. If you place multiple buy orders, your available margin gets blocked proportionally. If you do not have enough funds, the order will be rejected by the system.

Can I place a day order during the pre-open session?

Yes. Orders placed during the pre-open session from 9:00 AM to 9:08 AM are treated as day orders and participate in the call auction for determining the opening price. If your order matches during the auction, it gets executed at the opening price. If not, it stays active as a regular day order until 3:30 PM.

Investments in securities market are subject to market risks. This article is for educational purposes only and does not constitute investment advice.