Day Trade

{
  "id": "MLC-T-FIN-000108",
  "term": "Day Trade",
  "field": "Finance and investing",
  "definition": "FINRA rules define a “day trade” as the purchase and sale, or the sale and purchase, of the same security on the same day in a margin account. This definition encompasses any security, including options. Selling short and purchasing to cover a position in the same security on the same day is also considered a day trade.\n\nExceptions to this definition include:\n\n• a long security position held overnight and sold the next day prior to any new purchase of the same security; or\n\n• a short security position held overnight and purchased the next day prior to any new sale of the same security.",
  "references": [
    "SEC Investor.gov Glossary"
  ],
  "url": "https://mlchart.com/terminology/finance/day-trade/"
}