Definition of Stock Day Trader

Very active stock trader who holds positions for a very short time and makes several trades each day. Day traders are individuals who are trying to make a career out of buying and selling stocks very quickly, often making dozens of trades in a single day and generally closing all positions at the end of each day. Day trading can be costly, since the commissions and the bid/ask spread add up when there are so many transactions.

What is the definition of a Day Trade?

A day trade is the purchase and sale (or short sale and purchase) of the same security on the same day in a single account.

2. What is not a Day Trade?

Liquidation of overnight positions (or purchase to cover a previous day's short sale) of the same security the next day will no longer be considered a Day Trade.