|
Day trading
is the buying and selling of financial instruments (stocks,
currency, futures, options, etc) within the space of a single
day. If you are Day trading, it means that if you open
a position, you must close it before the end of the same session.
A day trader might buy a stock or futures contract at the
opening bell and then sell it an hour later or even less.
Some forms of day trading involve holding positions for only
a few minutes, under the assumption that the less time a position
is held while stock trading, the less risk a day trader is
exposed to. Day trading will involve the trader in a greater
number of transactions than someone stock trading would make,
although this will also depend to a large extent on what the
day trader is trading, and what day trading opportunities
arise on the day. Day trading individual stocks or SSF (Single
Stock Futures) is still the most popular form of day trading,
although recent US regulations are causing stock trading participants
to investigate alternative methods of trading, such as spread
betting or spread trading as it is often known.
|
|
