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← Series 7: Order Processing & Trade Settlement
Series 7 practice questioneasyOrder Types — GTC and Day Orders

If a customer does not specify a time qualifier when placing a limit order, how is the order treated?

  1. AAs a Good-Til-Cancelled (GTC) order
  2. BAs a Good-Through-Week order
  3. CAs a Fill-or-Kill (FOK) order
  4. DAs a day order that expires at the end of the trading day✓ Correct answer
Explanation

Why D — As a day order that expires at the end of the trading day

Unless otherwise specified by the customer, all orders are assumed to be day orders. A day order remains active only until the close of trading on the day it is entered. If the order is not executed by the end of the trading day, it is automatically cancelled. Customers who want their orders to remain open beyond the current trading day must specifically request a GTC (Good-Til-Cancelled) designation.

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