Essential

Day Trading

Buying and selling financial instruments within the same trading day, closing all positions before market close.

Definition

Day trading involves opening and closing positions within a single trading day, never holding overnight. Day traders aim to profit from short-term price movements and avoid overnight risk. It requires discipline, quick decision-making, and typically uses technical analysis.

How It Works

Open positions during market hours
Close all positions before market close
Profit from intraday price movements
No overnight holding risk or swap fees

Types of Day Trading

Scalping

Very short trades, seconds to minutes

Momentum Trading

Trading strong intraday trends

Range Trading

Trading between support and resistance

Trading Tips

Requires significant time commitment

Start with a demo account to practice

Use strict risk management rules

Related Terms

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