However, traders rarely take possession of a stock overnight or longer. Rather, they buy and sell stocks within minutes or seconds. SOES is a forced execution system for orders up to 1000 shares. Back to our previous example. Hypothetical example for illustrative purposes.
Day trading means buying and selling the same security on the same day.
It is a short term strategy for capital gains and trading profits while Investing is a strategy for long term appreciation and dividends. Day trading involves considerable risk. It must occur only in a margin account which allows for the purchase of stocks in excess of the capital in the account thereby further increasing the risk of loss. Losses in excess of the buying power must be covered by the end of the trading day by the deposit of cash or securities. Unusually high market volotality and volume may delay system access and trade executions, creating additional risk.