Day trader

« Back to Glossary Index

An investor who buys and sells between the opening and closing of the same session to take advantage of small variations in the prices of highly volatile stocks and multiply their return on invested capital. These traders have proliferated due to the low cost of electronic transactions, the volatility of internet-related values, towards which they have a special inclination, and the speed with which news and rumors are disseminated on the network. It is a practice in which excessive activity implies the payment of commissions that must be subtracted from the hypothetical final benefit.

« Back to Glossary Index