End of Day Order (EOD)
End of Day Order (EOD) is a type of order placed by investors in the financial markets. It is an order to buy or sell a security at the end of the trading day, when the markets close. This type of order is used by investors who want to take advantage of price movements during the day, but do not want to be exposed to the risk of the markets changing direction overnight. EOD orders are typically placed with a broker or financial institution, and the order is executed when the markets close.
History of End of Day Order
The concept of End of Day Order has been around since the early days of the stock market. It was originally used by investors who wanted to take advantage of the price movements during the day, but did not want to be exposed to the risk of the markets changing direction overnight. Over time, the concept of EOD orders has evolved and become more sophisticated, with the introduction of algorithmic trading and other advanced trading strategies.
Comparison Table
| Order Type | Execution Time | Risk Exposure |
|---|---|---|
| EOD Order | End of Day | Low |
| Market Order | Immediate | High |
Summary
End of Day Order (EOD) is a type of order placed by investors in the financial markets. It is an order to buy or sell a security at the end of the trading day, when the markets close. This type of order is used by investors who want to take advantage of price movements during the day, but do not want to be exposed to the risk of the markets changing direction overnight. For more information about EOD orders, investors can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Market Order
- Limit Order
- Stop Order
- Stop Limit Order
- Market on Close Order
- Good Till Cancelled Order
- Fill or Kill Order
- Immediate or Cancel Order
- All or None Order
- Algorithmic Trading
