Day trading is buying and selling the same security on the same day. It’s a strategy requiring quick decisions, risk management, and active monitoring of the markets. Day trading requires in-depth knowledge of markets and trading techniques, and comes with risks, so make sure you understand it before you start.
Risks
- Day trading usually isn’t a good fit for someone with limited funds, little trading experience, or a low tolerance for risk.
- When investing, your capital is always at risk. You could lose all the money you put into day trading, so never invest more than you are prepared to lose.
- When using a market order, it’s important to remember that it always executes at the best available price. This means that depending on the trading volume, the price you see when you place the order may not be the price you actually get. Read more about how different order types work here.
- You should be wary of advertisements or other statements that emphasise the potential for large profits in day trading.
- If you are unsure whether this trading strategy works for you, we urge you to consult with a local financial advisor.
Can I day trade on Lightyear?
There are currently no limits on how many trades you are allowed to make in regular stock on Lightyear. However, we do not support active day trading in ETFs and may issue a warning or restrict your trading activity if this occurs.