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 ?
Back in Tax Court, Tucker again challenged the IRS's determination, claiming in part that the IRS had incorrectly considered his day-trading losses as a dissipation of assets.
The Tax Court held that the IRS Appeals officer had not erred in including the day-trading losses in her analysis of Tucker's reasonable collection potential and in rejecting Tucker's OIC.
Adding Tucker's day-trading losses to his other disposable income as determined under the IRS's guidelines, his reasonable collection potential was in excess of his outstanding tax liabilities.
The Japan Day Traders Association, a Tokyo-based nonprofit organization offering lectures on the nuts and bolts of day-trading, has been inundated with people attending the lectures.
''Day-trading requires chart reading techniques to forecast stock price movements and self-management ability to make cool judgments,'' he said.
Targeting "serious" traders, who average 29 trades per day, and the relatively small but growing number of day-trading companies that provide customers with high-speed terminals and real-time quotes (currently an estimated 60 firms nationally), Collins calls day trading "little more than a game of chance." Amazed by the boldness of industry claims and ad pitches, such as Lazy Day Trader's pledge that "You don't have to be able to understand Economics, the Stock Market or International Finance," Collins wants the industry to provide unambiguous warnings of risk--announcing that one's chances of making money with a capitalization of less than $50,000 are slim.
Until this summer, most people outside the States had never heard of day-trading, in which punters are encouraged to buy and sell shares rapidly, often on the same day if the price moves sharply.
He later unleashed a hail of bullets inside another day-trading company.
However, despite the financial reasons behind that brutal massacre, investors in the US are showing no signs of staying away from day-trading.