Series 27: Day Trading

Day Trading

A day trade can be one of the following:

• • A security is bought and sold on the same day
• • A security is sold short and bought back on the same day
• • A long position is bought and held overnight, under the condition that it will be sold the next day before any new purchase of the same security

A day trader typically tries to profit from small price movements.

An investor who only occasionally executes day trades has margin requirements similar to oth