Introduction
If you’re a new investor or trader just getting started with E*TRADE, you may come across the term “good for day” and wonder what it means. In this article, we’ll explain what “good for day” means on E*TRADE and how it can affect your trading strategy.
What is “Good for Day”?
“Good for day” is a trading order option that specifies that an order will be valid for the current trading day only. This means that if the order is not executed by the end of the trading day, it will expire and will need to be re-entered if you still want to place the trade.
Why Use “Good for Day”?
Using the “good for day” option can be useful if you want to take advantage of short-term market movements without committing to a long-term position. It can also be helpful if you want to limit your exposure to market risks by only holding a position for a single trading day.
How to Place a “Good for Day” Order on E*TRADE
To place a “good for day” order on E*TRADE, follow these steps: 1. Log in to your E*TRADE account. 2. Click on the “Trade” tab. 3. Select the security you want to trade. 4. Choose “Buy” or “Sell”. 5. Select “Good for Day” from the “Duration” drop-down menu. 6. Enter the quantity and price of the security you want to trade. 7. Review and submit your order.
Alternatives to “Good for Day”
If you don’t want to use the “good for day” option, there are other order types available on E*TRADE, including:
Good ’til Cancelled (GTC)
A GTC order remains active until it is executed or cancelled. This means that it will remain in the system until it is either filled or manually cancelled by the trader.
Immediate or Cancel (IOC)
An IOC order is an order to buy or sell a security that must be executed immediately. If the order cannot be filled immediately, it will be cancelled.
Fill or Kill (FOK)
A FOK order is similar to an IOC order, but it must be filled completely at once or cancelled. If the order cannot be executed in full immediately, it will be cancelled.
Conclusion
In conclusion, “good for day” is a trading order option that specifies that an order will be valid for the current trading day only. It can be useful if you want to take advantage of short-term market movements without committing to a long-term position, or if you want to limit your exposure to market risks. However, if you don’t want to use the “good for day” option, there are other order types available on E*TRADE that may better suit your trading strategy. As always, it’s important to do your research and understand the risks involved before placing any trades.
