What is DayTrading?
Daytrading is a high-risk/high-return intra-day buying and selling of stocks (equities). A client connects in real time across the internet through a brokerage firm to an electronic network that exchanges stocks between buyers and sellers. Direct access traders can bid and offer stock as a wholesale customer or can buy from and sell to market makers at retail prices using (SOES), Electronic Communication Networks (ECNs), and NYSE DOT. Daytraders typically exit all their positions before the market closes at the end of the day to avoid worrying about after market price declines. There are exceptions, such as swing trades.
