Day trading

Day tradingisspeculationin 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.

Commonly traded financial instruments includestocks,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.