Day trading refers to the practice of speculation in securities, specifically buying and selling financial instruments within the same trading day, such that all positions are usually closed before the market close for the trading day. Traders who participate in day trading are called active traders or day traders. Traders who trade in this capacity with the motive of profit, assume the capital markets role of speculator.
Not widely known, the correct definition of an "intra-day" means the move as measured from the previous close and not just relative to another price traded on the same day.
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 an activity that was exclusive to financial firms and professional speculators. Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, with the advent of electronic trading and margin trading, day trading has become increasingly popular among at-home traders.
Read more about Day Trading: Characteristics, History, Techniques, Regulations and Restrictions
Other articles related to "day trading, trading, day, days":
... of academia, the controversy surrounding market timing is primarily focused on day trading conducted by individual investors and the mutual fund trading scandals perpetrated by ... Unexposed insider trading, accounting fraud, embezzlement and pump and dump strategies are factors that hamper an efficient, rational, fair and transparent investing, because they may create fictitious company's ... A classical case related to insider trading of listed companies involved Raj Rajaratnam and its hedge fund management firm - the Galleon Group ...
... Regulatory Authority and SEC further restrict the entry by means of "pattern day trader" amendments ... Pattern day trader is a term defined by the SEC to describe any trader who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any ... A pattern day trader is subject to special rules, the main rule being that in order to engage in pattern day trading the trader must maintain an equity balance of at least $25,000 in a ...
... While all investments have some inherent level of risk, day trading is considered by the SEC to have significantly high risk ... makes new amendments to address the intraday risks associated with day trading in customer accounts ... in customer accounts that engage in a pattern of day trading in amounts sufficient to support the risks associated with such trading activities ...
... Next day he boarded the steamship Celestial, disembarking on 6 July at Singapore, where he went for treatment to the European Hospital Conrad would describe it in his 1900 novel Lord Jim, whose hero had likewise ... James (Jim) Lingard had been living for some years as a trading agent on Borneo, at Berau, on the Berau River ... Apart from the six days at Muntok in 1883, this was Conrad's first opportunity to see the East up close ...
... Day trading software is computer software intended to facilitate day trading of stocks or other financial instruments ...
Famous quotes containing the words trading and/or day:
“His farm was “grounds,” and not a farm at all;
His house among the local sheds and shanties
Rose like a factor’s at a trading station.”
—Robert Frost (1874–1963)
“We construct a narrative for ourselves, and that’s the thread that we follow from one day to the next. People who disintegrate as personalities are the ones who lose that thread.”
—Paul Auster (b. 1947)