Day trading

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Day trading

Establishing and liquidating the same position or positions within one day's trading.

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.
References in periodicals archive ?
There are about 4,000 active day traders today, up from a little over 1,000 in 1996, said Jim Lee, president of the Electronic Traders Association in Washington, the industry's trade group.
In issuing their warning Wednesday, regulators said they are concerned that day-trading firms might be giving novice day traders unrealistic profit expectations.
We see this as a critical opportunity to educate and train investors about risk and market dynamics so they can learn to be successful day traders.
While investors hold their collective breath at each major undulation, day traders thrive on it.
If you believe what you read, day traders have turned Net stocks into acrobats, perched tippy-toe-like on dizzyingly high valuations.
We're excited about the fact that CyBerBroker clients are serious day traders, who have met minimum requirements," said Patrick Connelly, Co-founder and CFO of The Underground Trader.
CyBerTrader is now used by almost 1,000 day traders and online investors via the Internet.
Day traders hold no open positions overnight and depending on market conditions, trades can happen relatively quick.
Day traders know this and they can run for cover unlike any other investor.
Many day traders open and close their trades within the space of a few seconds or minutes, focusing on narrow spreads and markets with plenty of movement.