Day order has a particular significance in relation to IG's platform. Here, we define day order in general investing and explain what it means to you when trading with IG.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
A day order is a type of order, or instruction from a trader to their broker, to buy or sell a certain asset. Day orders require that a trade is executed if an asset hits a specified price (referred to as the level) at any point during the trading day on which the order is made.
The day order will expire if the price specified in the order is not met by the asset by the time the market closes. There are two different types of day order: stop day orders and limit day orders. If the price at which the trade will be executed is more favorable than the current market price then it is a limit day order, if it is less favorable it is a stop day order.
Day orders differ from GTC (good-‘til-cancelled) orders, or orders that specify a longer or shorter time period for execution. Most brokers and trading platforms tend to use day orders as the default means of trading, meaning that a trade will expire if unexecuted after a day unless a different time span is specified.
To place a day order with IG, go to the ‘order to open’ tab on the trade ticket and select today’s date under ‘time in force’.