Day trading

Day trading is a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day. This means that all positions are closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day's close and the next day's price at the open. Traders who trade in this capacity are generally classified as speculators.

Day trading contrasts with the long-term trades underlying buy-and-hold and value investing strategies.
Day trading may require fast trade execution, sometimes as fast as milli-seconds in scalping, therefore direct-access day trading software is often needed.

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Source: Wikipedia · Image: Wikimedia Commons · Public domain

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