In the share market, GFD stands for Good for Day Order. This type of order allows traders to place buy or sell orders that are intended to be completed within the same trading day. Once a GFD order is placed, it remains active throughout the day until it’s either fully executed or the trading session ends. If the order is not fully or partially executed by the close of the trading day, it will be automatically canceled. GFD orders are particularly suitable for active traders who aim to buy or sell stocks within a single day.

Key Features of GFD Orders:

GFD orders are usually limit orders with a time frame limited to the specific trading day. Traders must execute the purchase or sale of securities within this window. If the target price is not met by the end of the session, the order expires and is automatically canceled, requiring no further action from the trader.

Benefits of GFD Orders:

Good-for-Day orders offer several advantages for traders looking to buy or sell securities at a particular price. One of the biggest benefits is that the trader doesn’t need to constantly monitor the stock throughout the day waiting for the right moment to execute the trade. This type of order is particularly useful for intraday traders who need to manage multiple securities at once, allowing them to place their orders and move on without having to actively track each position all day.