What is day trading?Day Trading

Buying and selling (or selling and buying back) the same stock within one day, holding nothing overnight. Ordinary A-shares can't do this because of T+1; US and Taiwan stocks allow it, each with its own limits and fee rules.

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Hong Kong Stock Rules
Same-Day Trading and T+2 Settlement
Hong Kong stocks bought today can be sold today, but the formal settlement of cash and shares happens on the 2nd trading day after the trade, and sale money can only be withdrawn after that.
Taiwan Stock Rules
Day Trading and the Halved Transaction Tax
A stock day trade means buying and selling the same stock on the same day and settling only the difference; the transaction tax is halved to 0.15%, but you still have to account for commission and the risk of not being able to sell.
US Stock Rules
The PDT Rule: Limits on Day Trades
A margin account that makes 4 or more day trades in any 5 trading days is flagged as a PDT and needs at least $25,000 in account equity to keep going.

Related terms

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Go to “Same-Day Trading and T+2 Settlement”