A zero day vulnerability is an unknown hole in software that is exploited by hackers before the vendor becomes aware of it. These exploits can go undetected for months, allowing malicious activities like monitoring or theft. There is high demand for zero day exploits due to their ability to go undetected for long periods, with the average exploit remaining undetected for over 300 days. Once a vulnerability is publicly known, patches can be released and it is no longer considered a zero day exploit.