Trading
Day Trading
Opening and closing all positions within the same trading day.
Full Definition
Day trading involves opening and closing positions within the same trading day, avoiding overnight risk and swap charges. Day traders typically use 15-minute to 1-hour charts and may take 1-10 trades per day. This style requires dedicated time during market hours and good understanding of intraday price action and news events.
Example
A day trader identifies a setup on EUR/USD at 9 AM and enters long. They manage the trade throughout the day, taking profit at 2 PM for a 40 pip gain. All positions are closed before the daily close.
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