Day trading refers to the practice of buying and selling financial instruments such as stocks, commodities, or currencies within the same trading day. This means that all positions are closed out before the market closes for that trading day, hence the term ‘day’ trading. This is typically done on online trading platforms.
Day trading is known for its fast-paced action and can be particularly attractive to those who want immediate results from their investment decisions. It often involves analyzing charts and making trading decisions based on patterns and indicators. Profits are made by capitalizing on the small price movements of highly liquid stocks or indexes.