Day Trader Law and Legal Definition
Day trader is an individual involved in day trading, usually in technology companies. Day traders frequently borrow money to increase the number of stock shares they can purchase and sell.
The following is an example of a case law on day trader:
Day traders are individuals who are trying to make a career out of buying and selling stocks very quickly, often making dozens of trades in a single day and generally closing all positions at the end of each day. Day trading can be costly, since the commissions and the bid/ask spread add up when there are so many transactions. [Taubenfeld v. Career Educ. Corp., 2004 U.S. Dist. LEXIS 4363 (N.D. Ill. Mar. 19, 2004)].