A day trader is someone who opens and closes trades within the same trading day, never holding positions overnight, in order to profit from intraday price swings.
They trade stocks, forex, futures, or options, often using leverage and executing multiple trades a session. Day traders depend on real-time charts, technical analysis, news catalysts, and indicators to make fast decisions, and on strict risk management to survive.
They can be retail traders working from home through an online broker, or professionals at proprietary firms, banks, or funds. In the US, the "pattern day trader" designation and its $25,000 minimum equity requirement were eliminated effective June 2026, replaced by a risk-based intraday margin system; the standard $2,000 margin account minimum still applies.
It is a demanding, high-risk pursuit.