How much money do you need to day trade stocks
I was a day trader for many years, and it almost killed me. For the occupation, see Day trader. I only care about you. The liquidity and small spreads provided by ECNs allow an individual to make near-instantaneous trades and to get favorable pricing.
When I was starting an Internet business I started over a dozen Internet businesses and watched all of them fail but one. The basic strategy of news playing is to buy a stock which has just announced good news, or short sell on bad news. Because of the high risk of margin use, and of other day trading practices, a day trader will often have to exit a losing position very quickly, in order to prevent a greater, unacceptable loss, or even a disastrous loss, much larger than his or her original investment, or even larger than his or her total assets. Even a moderately active day trader can expect to meet these requirements, making the basic data feed essentially "free". How much money do you need to day trade stocks for direct-access brokers are calculated based on volume.
Most worldwide markets operate on a bid-ask -based system. New brokerage firms which specialized in serving online traders who wanted to trade on the ECNs emerged. I only care about you.
On the other hand, traders who wish to queue and wait for execution receive the spreads bonuses. Archipelago eventually became a stock exchange and in was purchased by the NYSE. The margin interest rate is usually based on the broker's call. ECNs are in constant flux. The contrarian trader buys an instrument which has been falling, or short-sells a rising one, in the expectation that the trend will change.
This is because rumors or estimates of the event like those issued by market and industry analysts will already have been circulated before the official release, causing prices to move in anticipation. This is called margin trading. Retail forex trading became a popular way to day trade due to its liquidity and the hour nature of the market. The world is never crazy. This applies not just to trading but everything.