Day Trading

Business, Legal & Accounting Glossary

Definition: Day Trading

Full Definition of Day Trading

Day trading is the practice of quickly and frequently buying and selling stocks in the belief that the investor can capture substantial value through the short-term changes in the stock price.

Day trading refers to the practice of buying and selling the same stock within the same trading day. Investors practicing day trading believe they can create substantial returns by capitalizing on the natural volatility of the market. However, the increased trading costs often wipe out accrued gains, and the resulting gains are subject to the higher short-term capital gains tax instead of the lower long-term capital gains tax.

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Modern Language Association (MLA):
Day Trading. Payroll & Accounting Heaven Ltd. September 28, 2021
Chicago Manual of Style (CMS):
Day Trading. Payroll & Accounting Heaven Ltd. (accessed: September 28, 2021).
American Psychological Association (APA):
Day Trading. Retrieved September 28, 2021, from website:

Definition Sources

Definitions for Day Trading 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: 4th August, 2021 | 0 Views.