Day trading

(redirected from Daytrading)
Also found in: Dictionary.

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 ?
Daytrading has a general as well as a specific definition.
Fast, furious, ferocious, this is daytrading as if there is no tomorrow.
A few brokers who specialise in daytrading are already operating in the UK, and more are on the way.
Daytrading broker InvestIn recently showed me around their trading floor in the City of London.
Daytrading software is powerful, providing the different buy and sell prices from the various brokers.
Many still trade from their computer at home, but a growing band head for daytrading centres, glorified internet cafes devoted to playing the stock market.
However, it is not the only reason daytrading has a bad name.
InvestIN are confident a Scottish daytrading centre will quickly attract a loyal band of customers.
Lieblong says he has increased his initial portfolio by about 15 percent since he started daytrading. He controls his risk of losing money by concentrating on stocks priced at about $20 per share and limiting his trades to between 500 and 1,000 shares each day.
Like many of his peers who have ventured into daytrading, Lieblong has no dependents whose welfare is determined by his performance.
But, daytrading isn't limited to 20-something speculators.
The SEC also plans to introduce an investor education web site later this year with detailed tips about daytrading and create an advisory committee to study issues related to on-line trading.