Day Trading

What Is Day Trading?

Day trading is the buying and selling of securities in the same day to attempt to profit on small moves in the market.

Day trading occurs when a traded instrument, such as stocks or currencies, is traded within a single trading day, a practice made easier for retail traders at the dawn of the internet era. By focusing on price momentum and technical patterns, day traders can hold positions from a few seconds to most of the trading day. Day trading strategies often employ setting stops and limits on each trade to minimize risk. Likewise, day traders often use leverage to take a larger position in the market than their capital allows, which can significantly increase losses as well as profits. Day traders can use multiple strategies including scalping, range trading, news trading and others.