Finance glossary
Day Trading
Definition
Buying and selling securities within the same trading day.
Day trading involves opening and closing positions within a single session to profit from short-term price moves, avoiding overnight risk. It demands discipline, capital, and tools, and most day traders lose money. In the U.S., the pattern day trader rule requires a 25,000 dollar minimum equity balance.
In a sentence
She tried day trading, opening and closing every position before the closing bell to avoid overnight risk.
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