day trade


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Day trade

Also known as a "daylight trade." The purchase and sale or the short sale and cover of the same security in a margin account on the same day.

Day Trade

An investment practice in which one buys (or sells short) a security and then sells (or buys) the same security in the same trading day. That is, a day trade involves the opening and the closing of a position on the same trading day, in order to profit from short-term changes in price. For example, a day trader may buy Stock A at $15 per share because he/she believes it will be $17 a few minutes or hours later. The activities in which day traders engage are high risk because there is no guarantee that the price will move in the desired direction. However, day traders provide a great deal of liquidity to the market.

day trade

A trade opened and closed on the same trading day. A purchase and sale of the same security on the same day is an example of a day trade. Likewise, a short sale followed by a covering purchase on the same day is a day trade.
References in periodicals archive ?
Day trade Your Way to Financial Freedom, 2nd Edition tells readers: - How the stock market works - How to scan for winning stocks - How to buy low and sell high not buy low and sell lower - How and when to short stocks - The proper way to use a trailing stop - How to avoid the most common beginner mistakes - How to use technical indicators - Which analysis works best for the daytrader - Which brokerage to use and which to avoid - How to manage risk - How to prepare yourself for the fast pace of daytrading The accompanying CD will walk readers through actual trades.
Co-author of the book, Day Trade Part-Time, Jeanette Szwec a veteran trader who taught herself to trade through the painful process of trial-and-error, has compiled today's most straightforward, no-frills look at how anyone can ease their way into day trading safely and sensibly.
Day Trade Part-Time walks the reader through every step of the learning process.
In all, Scottrade permitted customers in 11,708 margin accounts in which pattern day trading was being conducted to execute 171,910 day trades when the values of their accounts were below the minimum equity requirement.
Al-Khalili also noted that investors do not need to sign any contracts or documents with their brokers to be fit for Day Trading, all investors (Except Trust Accounts) will get the commission discount each time they execute Day Trades.
EST) that were executed on a prior day but were not reported as prior day trades, as more fully described below.
Among these services are same day/late day trades for mutual funds from multiple fund families, custody and trading of company stock, individually directed participant accounts, and unitization of separately managed accounts.