Day trading meaning refers to the practice of buying and selling the same financial instrument within a single market day.

Day trading meaning refers to the practice of buying and selling the same financial instrument within a single market day. The goal is to profit from short-term price movements rather than long-term growth. Day traders close all positions before the market closes, avoiding overnight risk and news exposure. To do this, traders often watch liquid assets—such as stocks, ETFs, forex pairs, or crypto—and use charts, real-time data, and order types like market, limit, and stop-loss. Many apply technical analysis, momentum strategies, or news-based catalysts to identify entries and exits. Because small moves are magnified, some use margin and leverage, which can amplify gains and losses. Day trading differs from swing trading or investing: holding periods are minutes to hours, and turnover is high. It also carries unique rules and costs, including commissions, spreads, and pattern day trader (PDT) requirements in the U.S. Day trading is high risk and not suitable for everyone; beginners should learn terminology, practice on simulators, and understand the potential for rapid losses before risking real capital.

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