Definition of Day trader:
One who takes positions and liquidates them within the same trading day.
There is no special qualification required to become a day trader. Instead day traders are classified based on the frequency of their trading. FINRA and NYSE classify day traders based on whether they trade four or more times during a five-day span, provided the number of day trades is more than 6% of the customer's total trading activity during that period or the brokerage/investment firm where they have opened an account considers them a day trader. Day traders are subject to capital and margin maintenance requirements.
A day trader is a trader who executes a large volume of short and long trades to capitalize on intraday market price action. The price action is a result of temporary supply and demand inefficiencies caused due to purchases and sales of the asset.
How to use Day trader in a sentence?
- Day traders are traders who execute intraday strategies to profit off price changes for a given asset.
- Day traders employ a wide variety of techniques in order to capitalize on market inefficiencies.
- Day trading can be a lucrative undertaking, but it also comes with a high degree of risk and uncertainty.
Meaning of Day trader & Day trader Definition