CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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What is day trading?

Learn more about day trading
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Day trading is when you buy and sell stock within a single day. If the price of the stock goes up during the day, you make a profit. If it goes down, you make a loss.

Where have you heard about day trading?

Stories about people making wins or losses on day trades often make the news. These stories usually talk about someone buying a stock in the morning, then selling it in the afternoon for a much higher or lower price.

What you need to know about day trading.

Day trading is not "investing" but speculating and that makes it a potentially very risky business. Warns the Securities and Exchange Commission: "Day traders typically suffer severe financial losses in their first months of trading, and many never graduate to profit-making status."

Part of the risk, but also an aspect of the potential reward, is that day traders rely to a great extent on borrowing money or trading on margin. Technical analysis can mitigate some of the risk as you get a feel for how a particular market or specific security will react to events.

On-line platforms mean more retail investors are getting involved in day trading but they need to beware of either paying commissions or to wide bid-ask spreads. The best platforms charge no commission and offer tight spreads.

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