Word of the Day
Buying and selling shares during the day in the hope of making a quick profit from the daily fluctuations in share prices. Most day traders don't hold shares overnight. 'Realtime' internet share dealing has driven growth in day trading because it has made it much easier for private investors to react quickly to price movements. But it is a high-risk activity and because the dealing charges per trade are so high, dealing in very large sums is common. Day trading is largely a US phenomenon. It is less likely to take off in the UK because of the 0.5% stamp duty we pay on all share purchases. Most day traders in the UK will use spread bets or CFDs.