Individual Stocks

Online Trading

What is “online trading,” and how does it differ from “day trading”?

When we buy and sell securities using the Internet or some other electronic method, we engage in online trading. We may be using a proprietary trading interface specific to the online firm with which we have an account. We use online trading instead of speaking directly with a broker, either in person or by phone, to execute a trade. Day trading, on the other hand, is the action or strategy of buying and selling securities of all types, and holding them for seconds, minutes, or hours, in order to profit from minuscule price movements during the session, often trading into and out of a security within a day.


This is a web preview of the "The Handy Investing Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App