All trading involves risk. Losses can exceed deposits.

Day trading definition

All trading involves risk. Losses can exceed deposits.

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Day trading is a short-term strategy that involves closing out all trades before the market closes. As such, day traders tend to have no open positions held overnight.

Traders who attempt to profit from intraday trades do so by taking advantage of small movements in price. By using financial derivatives, they are often able to trade on markets that are making negative moves as well as positive ones.

Day traders

Day traders can speculate on a variety of markets, including stocks, forex, commodities and futures. The rise of trading technology and increased prominence of margin trading that amplifies both profits and losses has made day trading more popular in recent years.

CFDs and spread bets are both useful products for day trading. Both are financial derivatives, and can be used to take both long and short positions on various markets.

How to start day trading?

In order to start day trading, you'll first of all need an account with a trading provider. You can open an account with IG in minutes, and once you do there's no obligation to fund or trade. Once your account is open, you'll need to pick a day trading strategy — then it's time to find your first opportunity.

Find out more about how to start day trading.

Contact us

We're here 24hrs a day from 8am Saturday to 10pm Friday.

0800 195 3100

You can also email us at newaccounts.uk@ig.com