Day Trader

Business, Legal & Accounting Glossary

Definition: Day Trader



Full Definition of Day Trader


A day trader is a market participant who generally closes out all trading positions before the market closes for the day. The growth of online discount brokerage in the late 1990s made possible the amateur day trader. The professional day trader, in contrast, probably trades for a living. The professional day trader can often avoid retail brokerage commissions by placing trades via direct access to an electronic communication network, or ECN. The professional day trader may focus very narrowly on a single market, like one commodity, or a few stocks in a particular sector of expertise. As a speculator, the day trader increases market liquidity. By narrowing the bid-ask spread, the day trader thus also tends to reduce the profit per trade of a market maker.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/day-trader/
Modern Language Association (MLA):
Day Trader. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 04, 2020 https://payrollheaven.com/define/day-trader/.
Chicago Manual of Style (CMS):
Day Trader. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/day-trader/ (accessed: July 04, 2020).
American Psychological Association (APA):
Day Trader. PayrollHeaven.com. Retrieved July 04, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/day-trader/

Definition Sources


Definitions for Day Trader are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th February, 2020 | 0 Views.