06 Aug

 Diference between online investing and day trading

Online investing is the method of placing orders via the Internet to buy and sell securities as compared to the method of placing your orders by speaking directly with a broker by a phone. There are online trading ompanies or brokers who eliminate commission fees. Some allowed for any trades without a commission. Currently, brokers allows for fix amount free trades monthly. However, they most requires a minimum balance of your account to be able to receive the free trades. If that balance is not met, or the amount of trades are exceeded, you must pay a fee. Day trading is a trading strategy where an individual buys and sells the same security again and again in a short period of time (often the same day) such that all positions are usually (but not necessarily always) closed before the market close of the trading day, in an attempt to profit from small security price movements. Some of the most day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures. Because you can use the financial leverage and the rapid returns that are possible, day trading can be either extremely profitable or extremely unprofitable, and high-risk profile traders can generate either huge percentage returns or huge percentage losses.

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