Day Trading

Day Trading

Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually (but not necessarily always) closed before the market close of the trading day. Traders that participate in day trading are called day traders.

Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.

Day trading used to be the preserve of financial firms and professional investors and speculators. Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, day trading has become increasingly popular among casual traders due to advances in technology, changes in legislation, and the popularity of the Internet, it's now possible for anyone to day trade from a home office.

Day Trading
 

 

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