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Day trading

From Simple English Wikipedia, the free encyclopedia

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

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  1. "Learn About the Similarities Between Day Trading and Gambling". The Balance. Archived from the original on 2021-06-17. Retrieved 2025-07-21.
  2. 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)
  3. "Choosing the Right Day-Trading Software". Investopedia. Retrieved 2025-07-21.
  4. Peterson, Ryan. "How to Become a Day Trader with $100: A Step-by-Step Guide • Benzinga". Benzinga. Retrieved 2025-07-21.
  5. "Day Trading: The Basics and How To Get Started". Investopedia. Retrieved 2025-07-21.