📖 Financial Lexicon Term
What is Day Trading?
A trading strategy where all positions are opened and closed within the same trading day, avoiding overnight exposure to market risk.
Detailed Explanation
Day Trading is an active speculation style where traders hold positions for minutes to hours, but strictly liquidate all accounts before the market close. This eliminates the risk of overnight price gaps or swap fees.
💡 Practical Trading Example
An intraday trader buys GBP/USD at 9:00 AM after a news release and sells it at 3:00 PM for a 30-pip profit, keeping the account cash-only overnight.