Day trading
refers to the practice of buying and
selling financial instruments within the
same trading day such that all positions
will usually (not necessarily always) be
closed before the market close of the
trading day.
After the .com crash new rules came
out requiring traders to have a minimum
of $25,000 to consistently daytrade.
Any accounts under $25,000 can only make
less than 4 day trades for any 5
consecutive business days.
Some of the
more commonly day-traded financial
instruments are stocks, stock options,
currencies, and a host of futures
contracts such as equity index futures,
interest rate futures, and commodity
futures.
Day trading used to be the preserve of
financial firms and professional
investors and speculators. Many day
traders are bank or investment firm
employees working as specialists in
equity investment and fund management.
However, day trading has become
increasingly popular among casual
traders due to advances in technology,
changes in legislation, and the
popularity of the internet.
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