Business, Legal & Accounting Glossary
Very active stock trader who holds positions for a very short time and makes several trades each day. Day traders are individuals who are trying to make a career out of buying and selling stocks very quickly, often making dozens of trades in a single day and generally closing all positions at the end of each day. Day trading can be costly, since the commissions and the bid/ask spread add up when there are so many transactions.
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.
currency day trading system
bid tick
pattern day trader
inside days
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.
Definitions for Day Trader are sourced/syndicated and enhanced from:
This glossary post was last updated: 29th October, 2021 | 0 Views.