For a 'Good for day' order, which statement is true?

For a 'Good for day' order, which statement is true?

• A. End of next trading day
• B. Valid until close of trading for current business day
• C. End of month
• D. After settlement

Answer: (B)

Good-for-day orders are time-in-force for a single trading day. They stay active in the market only until the end of that trading session, and if they aren’t executed, they’re canceled at the close. They don’t carry over to the next trading day, they don’t extend to the end of the month, and they aren’t kept after settlement. So the statement that it remains valid until the close of trading for the current business day is the correct description.

Good-for-day orders are time-in-force for a single trading day. They stay active in the market only until the end of that trading session, and if they aren’t executed, they’re canceled at the close. They don’t carry over to the next trading day, they don’t extend to the end of the month, and they aren’t kept after settlement. So the statement that it remains valid until the close of trading for the current business day is the correct description.