When you’re buying or selling shares on the Australian Securities Exchange (ASX), the order type you choose can make a surprising difference to your trading results. One of the most popular order types is the day order—a flexible tool for traders and investors who want control without the commitment. But what exactly is a day order, how does it work, and what should you know about using them in 2025?
What Is a Day Order?
A day order is an instruction you give your broker to buy or sell a security at a specified price, but only for the duration of the current trading day. If the order isn’t filled by the time the market closes, it automatically expires. This distinguishes it from a ‘good till cancelled’ (GTC) order, which stays open until executed or manually cancelled.
Key features of a day order:
- Valid only for the trading day it’s placed
- Can be used for buying or selling shares, ETFs, or other securities
- Expires automatically if not executed by market close
- Often used for short-term trading strategies
For example, if you place a day order to buy 100 BHP shares at $48.00 during Tuesday’s session, the order will only be active until the ASX closes that day. If BHP never trades at $48.00 or lower, your order lapses and you’ll need to place a new one if you still want to buy.
Day Order Duration and How It Works in Practice
In Australia, the ASX operates from 10:00am to 4:00pm AEST on business days. A day order is only active during these hours and will not carry over to the next trading day. This can be crucial if you’re chasing a price move or want to avoid overnight market risk.
How a day order plays out:
- Placement: You specify the security, quantity, and price. For instance, ‘Buy 200 CSL shares at $295.00, day order.’
- Market Activity: If the market price matches your conditions during the session, the order executes (fully or partially).
- Expiry: If not executed by 4:00pm, the order is automatically cancelled by the ASX’s systems.
In 2025, brokers’ trading platforms are increasingly sophisticated, sending you instant notifications if a day order is partially filled or expires. Some platforms even allow custom expiry times for orders within the day, giving even more control to active traders.
Types of Day Orders and Their Uses
Day orders come in a few variations, depending on your trading goals:
- Limit Day Orders: You specify the maximum price you’re willing to pay (for buys) or the minimum price you’ll accept (for sells). Common for investors seeking price certainty.
- Market Day Orders: You instruct your broker to execute the trade at the best available price during the day. Fast execution, but less price control.
- Stop-Loss Day Orders: These activate a market or limit order if a certain trigger price is reached within the day, helping you manage risk.
Example: In March 2025, after the ASX introduced new circuit breaker rules, many traders used day orders to take advantage of intraday volatility without risking overnight exposure to global market shocks.
Advantages, Risks, and 2025 Policy Updates
Why use a day order?
- Flexibility—no unwanted trades after market close
- Control over price and timing
- Protects against overnight market movements or company announcements
However, day orders also have limitations. If your price isn’t reached, your trade simply doesn’t happen. In fast-moving markets, you might miss out on an opportunity if the price only briefly touches your limit.
2025 update: The ASX’s enhanced trading platform has improved order matching and transparency, with real-time status updates and the ability to amend or cancel day orders instantly. Regulators have also cracked down on ‘spoofing’—placing fake day orders to manipulate prices—making it safer for genuine investors and traders to use day orders confidently.
Real-World Example: Using a Day Order in 2025
Suppose you’re eyeing Telstra shares (TLS), which closed at $4.25 yesterday. You think a drop to $4.20 is likely during today’s session. You place a day order: ‘Buy 500 TLS at $4.20.’
- If TLS dips to $4.20 during the day, your order executes—done deal.
- If TLS never touches $4.20, your order expires at 4:00pm. No shares bought, no risk of buying at tomorrow’s price.
With the ASX’s 2025 trading enhancements, you’ll get a notification on your broker app the moment the order is filled or expires, allowing you to act quickly for the next opportunity.
Conclusion
Day orders are a practical tool for Australian investors and traders seeking precision, control, and flexibility. With 2025’s updated market infrastructure and safeguards, they’re more transparent and user-friendly than ever. Whether you’re a seasoned trader or just starting out, understanding how day orders work can give you an edge on the ASX.
