Day Order
An order that remains valid only for the current trading session and is cancelled automatically at the close if unfilled.
How it is identified
Test: the order's validity expires at the end of the session in which it was placed
Unit
qualitative
In depth
Day validity is the default on Indian exchanges, because the order book itself is cleared at the end of each session rather than carried forward. An unfilled limit order therefore disappears overnight and must be re-entered, which is precisely why brokers offer GTT instructions as a substitute. The practical benefit is that stale intentions do not execute days later on prices set by news the trader has not seen. Traders who assume an order persists and then find themselves without a protective stop the next morning discover this the expensive way.
Worked example
A limit buy at ₹240 placed on Monday goes unfilled and is cancelled at the close. If the stock opens at ₹235 on Tuesday, no purchase occurs — the order no longer exists and would have to be placed again.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Day Order” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.