Good-for-day

A good-for-day (GFD) order is a trading instruction that remains valid only for the current trading session and automatically expires at the end of the day if not executed. This order type is commonly used in fast-moving markets where traders want exposure limited to a specific timeframe and do not wish orders to remain active overnight.

In practice, a trader might place a good-for-day order to buy crude oil futures at a specific price during the session, anticipating short-term market movement. If the price is not reached before the market closes, the order is cancelled without further action. This helps prevent unintended executions caused by overnight news or illiquid conditions.

Good-for-day orders are particularly useful for managing intraday risk and maintaining discipline in volatile markets. They reduce operational risk by ensuring stale orders do not remain in the system. While simple in concept, GFD orders are a key tool in structured trading strategies and risk control processes.