Day trading is speculation in security bonds, specifically the buying and selling of financial instruments during the trading day. Fast trading methods differs from the long-term trades that uses buy, hold and value investing strategies. Day traders exit before the market closes to avoid uncontrollable risks.[1][2][3]
Commonly traded financial instruments include stocks, contracts, currencies, contracts for difference, and a range of futures contracts such as stock index futures, interest rate futures, currency and commodity futures. Some day traders use a technique known as scalping, in which the trader holds the position for a few minutes or seconds, no more.[4][5]
References
- ↑ "Learn About the Similarities Between Day Trading and Gambling". The Balance. Archived from the original on 2021-06-17. Retrieved 2025-07-21.
- ↑ CPA, Sam Swenson, CFA. "What Is Day Trading & Is It A Bad Idea?". The Motley Fool. Retrieved 2025-07-21.
{{cite web}}: CS1 maint: multiple names: authors list (link)
- ↑ "Choosing the Right Day-Trading Software". Investopedia. Retrieved 2025-07-21.
- ↑ Wilson, Lily. "Spread Fund". Retrieved 2025-11-17.
- ↑ "Day Trading: The Basics and How To Get Started". Investopedia. Retrieved 2025-07-21.
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| Types of markets |
- Primary market
- Secondary market
- Third market
- Fourth market
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| Types of stocks |
- Common stock
- Golden share
- Preferred stock
- Restricted stock
- Tracking stock
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| Share capital |
- Authorised capital
- Issued shares
- Shares outstanding
- Treasury stock
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| Participants |
- Broker-dealer
- Day trader
- Floor broker
- Floor trader
- Investor
- Market maker
- Proprietary trader
- Quantitative analyst
- Financial law
- Regulator
- Stock trader
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| Exchanges |
- Electronic communication network
- List of stock exchanges
- Multilateral trading facility
- Over-the-counter
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| Stock valuation |
- Alpha
- Arbitrage pricing theory
- Beta
- Bid–ask spread
- Book value
- Capital asset pricing model
- Capital market line
- Dividend discount model
- Dividend yield
- Earnings per share
- Earnings yield
- Fed model
- Net asset value
- Security characteristic line
- Security market line
- T-model
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| Traders | |
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Trading theories
and strategies |
- Algorithmic trading
- Buy and hold
- Contrarian investing
- Day trading
- Dollar cost averaging
- Efficient-market hypothesis
- Fundamental analysis
- Growth stock
- Market timing
- Modern portfolio theory
- Momentum investing
- Mosaic theory
- Pairs trade
- Post-modern portfolio theory
- Random walk hypothesis
- Sector rotation
- Style investing
- Swing trading
- Technical analysis
- Trend following
- Value averaging
- Value investing
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| Related terms | |
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