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 ?
Read on to learn more about rolling spreads, monthly futures, quarterly futures and day trades.
April 22, 2013 /PRNewswire/ -- John Paul, head coach in Day Trade to Win's new eight week live training program, Private Mentorship, teaches traders exact strategies for trading futures, currencies and stocks.
By the end of the eight weeks, you have a complete go-to plan," says John Paul, head coach and founder of Day Trade to Win.
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.
The award-winning spread betting provider designed Day Trades specifically for traders who hold their positions only during short-term market movements.
The Complaint further alleges that throughout the Class Period, Citigroup made material misrepresentations in documents and statements issued to Sheehan's clients by omitting material facts concerning the following: (a) the commingling of client assets in the Sheehan Allocation Account; (b) the inherent conflict of interest in allowing Sheehan to dictate the allocation of day trades for his own benefit and for his clients' benefit at the end of each day when the outcome of each trade was known by Sheehan; (c) the risks created by the procedures utilized at Citigroup in allocating trades by Sheehan; and (d) the inequitable allocation of profits from day trades to Sheehan's personal accounts to the detriment of his clients.
If you were a client of Sheehan and maintained any investment accounts at Citigroup in which any day trades occurred during the Class Period, you may, no later than June 17, 2005, request that the Court appoint you as Lead Plaintiff.
The Exchange and Nasdaq will work together to resolve this issue and ensure that the reporting of prior day trades has no impact on current day trading activity.