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What is day trading?

Day trading is a trading strategy that involves entering and exiting positions on the same trading day. Since the trading happens within the same day, this strategy may also be referred to as intraday trading. The goal of day traders is to use intraday trading strategies to try and profit off of price changes in a financial instrument.

The term "day trader" originates from the stock market, where trading is open only during business days of the week. In this context, day traders never leave positions open overnight since they aim to capitalize on intraday price movements.