Day Trading
A trading style that opens and closes all positions within the same day, never holding a position overnight.
Day trading is a trading style that opens and closes all positions within the same trading day, never carrying a position overnight — sitting between the very short holding periods of scalping (see Kaavon's "Scalping" glossary definition) and the multi-day-to-weeks holding periods of swing trading (see Kaavon's "Swing Trading" glossary definition).
Because crypto markets trade continuously, 24 hours a day, the traditional notion of a trading "day" and closing out before an overnight gap is less structurally meaningful than in markets with scheduled closures — crypto day traders generally define their own session boundaries rather than following an exchange's fixed hours.
Examples
- A day trader closes every position before the end of their trading session, never carrying one overnight.
- Because crypto markets trade continuously, crypto day traders generally define their own session boundaries, rather than following a traditional exchange's fixed hours.