BizTerm Definition
Day Trader
Full Definition

Once a term used to describe professional investors who aggressively trade stocks, bonds and other financial instruments to capture short-term swings in prices, it is now applied to individuals who frequent small brokerage firms that offer terminals and quote streams. These individuals use their own capital - sometimes borrowed - to establish an account and then trade on a short-term basis. The term is also applied to individual investors who trade online for short-term gains. Regulators such as the SEC are currently examining the operations of day-trading brokerage firms, who may be reaping huge profits in the form of commissions at the expense of their high-volume customers.

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