NISM Certifications · NISM-Series-VIII: Equity Derivatives · Trading Mechanism
In the NSE derivatives trading system, which type of order is one that gets cancelled automatically at the end of the trading day if it is not executed?
A Day order is the order type that is automatically cancelled at the end of the trading day if it has not been executed. Good Till Cancelled and Good Till Date orders stay valid beyond one day, so they do not lapse at the close of the session.
- AGood Till Cancelled order
- BDay orderCorrect
- CGood Till Date order
- DStop loss order that carries over to the next day
Explanation
A Day order is valid only for the trading day on which it is placed and lapses at the close of the day if unexecuted. GTC and GTD orders remain valid beyond a day until cancelled or until the specified date. A stop loss order is a different order type and does not by nature carry over.
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