Intraday trading
Also called: day trading, intraday
Buying and selling the same shares within a single trading day, closing every position before the market shuts.
An intraday trader opens and closes positions on the same day, trying to profit from small price moves. Brokers often allow intraday traders to take larger positions than their cash would allow, which magnifies both gains and losses.
Because each round trip pays brokerage, charges and the bid-ask spread, frequent intraday trading needs consistent gains just to cover costs.
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