Day trading is also referred to as so-called intraday trading. This refers to the transactions/trades that are processed within one day attempting to make profits from the price fluctuations that occur in a day. Day trading is possible on every exchange. It can be run on stocks, indices, commodities and of course forex. Characteristic is that an intraday trader tries to make profits with the smallest price fluctuation. In order to work profitably with this method, one ideally tries like this to make as many trades as possible in one day. When you make a lot of trades, there is also a risk of making large ones quickly makes losses. According to the old stock market adage: "Back and forth makes the cash register empty".
Day trading only became increasingly important due to technology and the Internet. After what percentage price difference a profit taken depends on the trader's strategy. Thanks to the Internet, such orders can now be placed in just a few seconds to be executed. This means that private investors can also do online day trading. through modern Trading platforms, real-time prices and direct execution of an order are guaranteed. This direct access to the stock exchanges or the Forex exchange is referred to as "direct access".
Day trading was initially made possible by American banks. The costs of a transaction are calculated there according to the number of transactions Transactions are calculated, which means that the fees are not as high. In Europe it is usually the case that the bank or broker has a percentage of the turnover of a transaction. This difference can result in relatively high costs for a day trader.
Daytrading at the Forex
Day trading started with normal securities on the stock exchanges. Since the Forex is now the market with the highest turnover and also relatively can be subject to high price fluctuations, it has become an ideal market for day trading. You need some stock market experience for this successful day trading. With the right strategy, you can trade quite successfully here.
Leverage is an interesting tool in day trading. To get good leverage in a trade a short-term loan taken out with the broker, the so-called margin. As a result, the real traded sum is much higher than the sum that you have used. However, an appropriate course of action is recommended since the loss can of course also be higher.
Period of a daytrade
Day trading is actually no different from executing normal orders or trades. The main difference is that in day trading the time between buying and selling a currency pair is much shorter (within a day). Here, too, you can take advantage of the volatility of the price.