What is Day Trading?

Day trading is when a person buys and sells various financial instruments over the course of a day and closes his positions (sells everything) by the end of the day. The trader tries to make money by exploiting the difference between the buying and selling prices of instruments such as futures, options, currencies, stocks, commodity futures, etc.

This is a practice that used to be limited to the professionals in large financial institutions, but is now gaining popularity with individuals with online trading.