Day Order

A day order is a trading instruction that automatically expires at the end of the current trading session if it has not been executed — unlike Good Till Cancelled (GTC) orders that remain active until filled or explicitly cancelled by the investor. In Indian equity markets on NSE and BSE, the default validity for all limit and stop-loss orders is 'Day' — meaning if a buy order at ₹450 is placed for a stock currently trading at ₹460, and the stock does not fall to ₹450 before 3:30 PM on the same day, the order is automatically cancelled without execution. Day orders are the most commonly used order type for intraday traders who want precise price execution and automatic cancellation of unfilled orders at session end — preventing accidental carry-forward of intended intraday orders into overnight positions. The day order validity interacts importantly with the settlement type: intraday (MIS) orders must be squared off or auto-squared off before market close regardless of the day order mechanism, while delivery (CNC) day orders simply expire unfilled if the price condition is not met. For retail investors placing limit orders below the current market price to 'buy on dips' — for example, placing a limit buy for Nifty 50 ETF units during a morning market rally — the day order validity means the order will need to be re-placed the following day if the target price is not reached before the day's close.