Day Trading

Trade Mechanics

Opening and closing all trades within the same session, avoiding overnight swap charges and gap risk.

Day trading means opening and closing all positions within the same trading day, never holding a trade overnight. It avoids overnight swap charges and gap risk, but it requires actively monitoring the market during the session and typically involves more trades — and more spread cost — than longer-term styles. Day trading sits between scalping (much shorter holding periods) and swing trading (multi-day holding periods) on the trading-timeframe spectrum.

Related terms

Scalping Swap / Rollover Swing Trading

More in Trade Mechanics

Account Base Currency Bracket Order Break-Even Stop Cash Settlement CFD (Contract for Difference)Close By Order Contango and Backwardation Contract Size Contract Specification Entry Signal & Exit Signal Execution Model Fill-or-Kill (FOK) Order

After Day Trading

GuideChoosing a Trading Platform: MT4, MT5, cTrader and the Broker's OwnThe platform decides which orders you can place, whether your stops survive a closed laptop, and how much you would have to rewrite to leave. What actually differs between the options — and the point where the platform stops mattering and the broker takes over.

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