What is a day trade?

Day, or ‘spot’, trading is when you open and close a trade within the same trading day, usually by 10pm GMT. It one of the most popular ways to trade online as it allows traders to benefit from any direction the market is moving, up or down, through buying or selling it.

Price movements in forex or CFD trading are very small. So to aim for any meaningful profits, day traders have the ability to use leverage, or margin trading.

They also have at their disposal a number of trading strategies like scalping where they aim to profit from holding a position for a very short amount of time.

Day Trading

Learn how to open, modify and close a day trade on the easyMarkets platform here.

 

What can I trade as a day trade?

You can trade all markets on the easyMarkets platform as Day Trades. All 98 currency pairs, 5 metals, 12 commodities and 14 indices. Even though commodities are typically considered ‘futures’ markets, easyMarkets enables easier access to these products to be traded under spot conditions. One factor to be aware of is expiry dates and daily trading breaks for some markets. See them all on our trading hours’ page.

With easyMarkets you may roll your day trade into the next day (until expiry) but it does incur a daily renewal fee.

Many traders choose to close out of their positions before the day ends to avoid any possible negative price gaps which is a jump in price between the price at closing and the next day’s open price. easyMarkets offer negative balance protection which means if you have carried your deal over into the next day, and should the market gap, you will never lose more than what you invested in that trade.

Benefits and risks

Day trading is a popular way to trade the financial markets as with a small investment, traders, through the use of leverage, aim for higher profits than if they were only trading their own funds. Typical leverage amounts are 1:100, 1:200 or 1:400.

However, leverage may also magnify losses so it is prudent to never invest more than you can afford to lose and to avoid large leverage amounts like 1:1000.

Day Trading


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