A day trade can be one of the following:
- • A security is bought and sold on the same day
- • A security is sold short and bought back on the same day
- • A long position is bought and held overnight, under the condition that it will be sold the next day before any new purchase of the same security
A day trader typically tries to profit from small price movements.
An investor who only occasionally executes day trades has margin requirements similar to oth