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Friday, November 13, 2009

Day trading

What the Day trading is? We are going to discuss with you what Day trading actually is? Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close for the trading day.
The Traders that participate in day trading are called active traders or day traders.

Let us talk about the instruments of Day trading. Most commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.

Day trading used to be the preserve of financial firms and professional investors and speculators. Now question arise who are most common day traders? Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, with the advent of electronic trading and margin trading, day trading has become increasingly popular among casual, at home traders also.

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