Definition
Day trading is a strategy of opening and closing positions within the same trading day to seek gains from short-term price movement.
In market context
The approach demands repeated decisions under time pressure and can accumulate spreads, fees, slippage, and financing effects across many transactions. Leverage and volatile markets can magnify small errors, while competition, latency, and execution quality make consistent results difficult. A high activity level is not evidence of skill, and money needed for living expenses or near-term goals should not be exposed to day-trading losses.
Risk context
Day trading can produce rapid, substantial losses, particularly when positions are leveraged or financed with money the trader cannot afford to lose.
Source
Use the primary source for fuller regulatory or market context.