Day trading

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.

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.