Definition of Day Trading
A trading style where all positions are opened and closed within the same trading day. Day traders avoid overnight risk and typically use lower timeframes (M5, M15, H1).
At a glance
Term
Day Trading
URL slug
day-trading
Category
Trading styles
Short answer
A trading style where all positions are opened and closed within the same trading day.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Day Trading” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Day Trading” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Day Trading” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A trading style where all positions are opened and closed within the same trading day.
Knowing the precise definition of “Day Trading” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Day Trading” as loose slang while your broker/platform specification defines it more narrowly.