Day trading is the practice of buying and selling financial products during a trading session with the hope that throughout the day the price will continue to rise or fall. Fluctuations in the share price allow profits or fast losses. The products that are most traded include stocks, options, futures and currencies. These operations can be very profitable but they still pose a significant risk.
Scalping is a form of day trading. Speculations are of very short duration. A scalper makes dozens and sometimes hundreds of transactions per day. This method is not well seen by brokerages because they do not have time to process all the orders created through scalping and therefore lose money.
To date, there are only few brokerages that accept scalpers. The main advantage of this technique is the large amount of profits on a small change in interest rates. For example, a long trade reported earnings of X, in which case X is: Change in rate (multiplied by) amount of money generated by diverse unit.
In scalping, the change will be minimal, but the benefits will be even greater. In fact, X is, in this case, equal to: Change rate (multiplied by) the number of open positions (multiplied by) the amount of money generated by diverse unit. In a second, a scalping can earn what a classic operator takes several hours or even days to win.
Day trading describes the speculative short-term trading in securities. Here, positions are opened within the same trading day and closed again, already, with the aim to benefit from low price volatility. In general, it is with the objects of speculation about stocks, forex or futures or derivatives thereon.
Stock market trading days are the days on which trading takes place. In general, all banking days are trading days, there is also trading on other days. They are determined by the stock exchange itself, if they are not regulated by law. The representation of the stock market and non-trading day for a full year is listed in the trading calendar.
In addition to the trading and the settlement date are defined by the exchange. These are the days when a securities settlement must be made based on a Trade Credit Account.
If the days are public holidays or bank holidays, they are known as holiday trade. The turnover on the stock exchanges during the holiday trade are significantly lower than on working days. This reduced liquidity leads to the risk of higher price fluctuations.
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