What is ‘Day-Around Order’
An order that cancels and replaces a previously submitted day order, producing a new request with an adjusted volume or price limit. The term is primarily used by traders in the general equities market. As with a day order, the day-around will expire by the end of the business day.
Explaining ‘Day-Around Order’
A day-around order simplifies the cancellation and reorder process in trading by combining a cancel order form with a day order. For example, let’s say that an investor submits a day order to purchase stock XYZ with a limit at $50. The investor hears some detrimental news surrounding company XYZ and wants to lower the limit on the day order. Instead of submitting a cancel order form and submitting another day order, the investor can simply submit a day-around order with a new limit price.
Further Reading
- On the volatility and comovement of US financial markets around macroeconomic news announcements – www.jstor.org [PDF]
- Every minute counts in financial markets – www.sciencedirect.com [PDF]
- Information asymmetry around earnings announcements – link.springer.com [PDF]
- How different is Japanese corporate finance? An investigation of the information content of new security issues – academic.oup.com [PDF]
- Sand in the wheels or spanner in the works? The Tobin tax and global finance – academic.oup.com [PDF]
- The long-term share price reaction to black economic empowerment announcements on the JSE – www.tandfonline.com [PDF]
- Abnormal returns to acquired firms by type of acquisition and method of payment – www.jstor.org [PDF]
- Limit Order, Market Order and Cancellation in Foreign Exchange Market: One Particular Day Experience – naosite.lb.nagasaki-u.ac.jp [PDF]
- Conducting event studies on a small stock exchange – www.tandfonline.com [PDF]
