Definition of «day trading»

Day trading is a type of investment strategy where an individual buys and sells one or more stocks within the same day, with the goal of making short-term profits from small price fluctuations. This involves actively monitoring market trends throughout the day to identify opportunities for quick gains, and then quickly buying and selling shares accordingly. Day trading is typically done by individuals or firms using margin accounts, where they borrow money to purchase stocks, hoping that any profits made from short-term price movements will outweigh the costs of borrowing. However, day trading can also be high risk due to the potential for large losses if market trends do not go as expected.

Sentences with «day trading»

  • This is why a number of brokers now offer numerous types of day trading strategies in easy - to - follow training videos. (daytrading.com)
  • Unfortunately, there is no universal best strategy for day trading forex. (daytrading.com)
  • If you're interested in day trading stock options for a living it's important to be aware the contracts are based on 100 shares of the underlying stock. (daytrading.com)
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