Intraday Trading or Day trading is described as the opening and closing of the same security (any security, including options) on the same day in a brokerage account.
The US Securities and Exchange Commission requires pattern day traders to have at least $25,000 in their trading account to buy and sell the same stock on the same day.
When you buy and sell the same stock, you've made a day trade. You are limited to no more than 3-day trades in a 5 trading day (business day) window.
An example of day trading: You have 0 shares in XYZ stock. You buy 1 share of XYZ and then sell 1 share on the same day. This is considered a day trade.
| 1 day trade |
| 2 day trades |
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Sunday | Monday | Tuesday | Wednesday | Thursday | Friday | Saturday |
| Buy 1 Share of XYZ |
| Buy 2 shares of ABC |
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