End of day orders can be advantageous for a buyer because they do not have to continue following the order’s progress after the trading day has closed. Most market orders are typically placed immediately and therefore not a concern for end of day order cutoffs. End of day orders that are not executed for any reason will need to be re-entered again.
An end of day limit order frees an investor from the investment’s deduction in the future which allows them to place other trades. If an investor is seeking a specified price they may need to place a GTC order to wait for the price to be reached. This type of scenario is often associated with an investor’s risk management strategy and is best deployed as a GTC order. The GTC designation allows an investor to construct floors and ceilings for risk management purposes using limit and stop orders.