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 ?
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.
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.