What is the main characteristic of day trading?

The main characteristic of day trading is to close all positions by the end of the trading day. Day traders aim to capitalize on small price movements within a single day, which involves buying and selling financial instruments—such as stocks, options, or futures—within that same trading session. By doing so, they avoid the risk of holding positions overnight and being affected by market changes that can occur after trading hours, such as news announcements or economic reports.

This practice is driven by the goal of making multiple trades throughout the day to realize profits on short-term price fluctuations. As a result, day trading requires quick decision-making and a keen understanding of market behavior, as traders closely monitor their positions and market conditions throughout the day. Holding positions for several weeks, focusing solely on commodities, or using borrowed capital to trade may describe other trading strategies but do not encapsulate the essence of day trading.