| Buying and selling of financial instruments like futures, | | | | Pound are also available. |
| currencies, options and stocks with the sole aim of | | | | Day traders can have access to all of the exchanges |
| making a profit from the buying price and the selling | | | | and their markets through direct access brokers like |
| price is known as day trading. The main difference | | | | interactive brokers and transact futures. Choosing a |
| between day trading and other trading is that in a day | | | | day trading market depends upon various factors like |
| trading, positions are not held overnight or when the | | | | the initial financial status of the trader, the trading |
| market is closed for the day. | | | | system and the geographical location of the trader. A |
| Formerly, only financial companies like banks were day | | | | market that moves at a medium pace is best suited |
| trading due to their access to exchanges and market | | | | for a beginner of day trading. |
| data but now with the advent of Internet, individual | | | | The first important factor is the trading margin |
| traders can make day trading at a very low cost | | | | availability, which is the amount to be deposited while |
| having direct access to the exchanges. | | | | opening a day trading. The trading personality of the |
| There are many styles in day trading ranging from | | | | trader also plays a role because some traders take |
| short-term scalp where positions are held only for a | | | | their own time to trade while others are content with |
| few seconds or minutes to longer swing and position | | | | making their trades quickly. The geographical location |
| trading where a position may be held through out the | | | | of the trader makes much difference due to the |
| day depending upon how the trade is doing. | | | | different markets’ trading times. The trading style |
| There are different types of day trading namely trend | | | | also varies from market to market. Some markets |
| trades which is the trade in the direction of the current | | | | move slowly and steadily while others move very |
| price movement, counter trend trades which is against | | | | quickly even without a warning. Since some traders |
| the direction of the current price movement and | | | | would like to take some time before making decision |
| ranging trades are trades that move back and forth | | | | they prefer markets that move at a medium pace. |
| between the two prices. | | | | Some popular day trading markets are available to |
| There are many financial markets that can be day | | | | traders in different locations because they trade 24 |
| traded offered by various exchanges. The major | | | | hours a day. Therefore, in a nutshell, for beginning day |
| markets are futures, options, currencies and stock | | | | traders the best markets are the ones that satisfy the |
| markets. | | | | following criteria. |
| Futures can be based on currencies like Euro, British | | | | Low initial and maintenance margin, smooth and |
| Pound and Swiss franc. Futures based on stock | | | | consistent moves, low tick value, which is the value per |
| indices like DAX, NASDAQ and futures based on | | | | minimum price change and accessibility to traders in |
| commodities like oil, gold, wheat and so on and | | | | different locations. |
| currencies like Euro to US Dollars and Euro to British | | | | |