An “End of Day” order, also known as a “Good till Close” or “Day Order”, is a direction given by a trader to a broker to buy or sell a security at a specific price that expires at the end of the trading day if it’s not fulfilled.
If the order cannot be completed (i.e., if the security does not reach the specified price), it will be automatically canceled.
This type of order allows a trader to set a specific price for a trade and ensures that the trade will only be executed if the security reaches that price during the trading day.
If the market never reaches the specified price, the order will not be executed.
End of Day orders are useful for traders who are unable to or prefer not to monitor the markets throughout the day, as they allow for a degree of automation in trading.
They also provide a tool for managing risk, as the trader can set a limit on the price at which they are willing to buy or sell a security.
However, traders should be aware that there is no guarantee an End of Day order will be executed, as it depends on the security’s price movement during the trading day.
Additionally, because these orders expire at the end of the trading day, they need to be placed again if the trader wants to keep the order open for the next trading day.