Mastering Stock Market Orders: A Beginner’s Guide to Timing, Price, and Risk Management
Understanding the validity or duration of your orders is just as important as choosing the right price. These instructions tell the broker’s system how long to keep your order active before giving up. Here is a detailed breakdown of these order types, designed to help beginners navigate the trading platform like a pro. DAY (Day Order) The DAY order is the default setting for most traders. It tells the broker that your interest in buying or selling only lasts until the end of the current trading session How it works: If you place an order at 10:00 AM and it does not find a match by the time the market closes (for example, 4:00 PM), the system automatically deletes it. Best for: Intraday traders who do not want to wake up the next morning to an unexpected filled order because the market opened at a different price GTC (Good Till Cancelled) A GTC order stays live in the system for an extended period, or at least until the broker’s maximum limit (usually 30 to 9...