A day trader is someone who opens and closes trades within the same trading day, without holding positions overnight, to profit from intraday price swings.
Day traders may trade stocks, forex, futures, or options. Many use leverage and place multiple trades during a session. Their decisions often rely on real-time charts, technical analysis, news catalysts, and indicators. Strict risk management is essential because losses can build quickly.
A day trader may be a retail trader using an online broker or a professional working for a proprietary trading firm, bank, or fund. In the United States, the "pattern day trader" designation and its $25,000 minimum equity requirement were eliminated effective June 2026. The replacement is a risk-based intraday margin system, while the standard $2,000 minimum for a margin account still applies.
Day trading is demanding and carries a high level of risk.