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Simple English definitions for legal terms
day trading
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A quick definition of day trading:
Day trading is when someone buys and sells stocks or other things like it on the same day, usually using the internet. They do this to try and make a quick profit by selling it for more than they bought it for. It's like going to the store and buying something on sale, then selling it to someone else for more money right away. Short-term trading is when someone buys something just to sell it quickly and make money from the price going up and down.
A more thorough explanation:
Day trading is a type of trading where a person buys and sells stocks or other securities on the same day, usually over the internet, with the goal of making a quick profit from the difference between the buying price and the selling price.
For example, let's say a person buys 100 shares of a company's stock for $10 each in the morning and sells them for $12 each in the afternoon. They would make a profit of $200 ($2 per share x 100 shares).
Day trading is different from long-term investing, where a person buys stocks with the intention of holding onto them for a longer period of time. Day traders are looking to make quick profits by taking advantage of short-term market fluctuations.