An investor who has a margin account with his brokerage firm buys 100 shares of Quick Flip Inc. Later that day, the investor sells 100 shares of Quick Flip Inc. Without other holdings in Quick Flip Inc, would this sequence of transactions be considered a day trade?

Question

Business

Yahir Cisneros

21 June, 08:21

An investor who has a margin account with his brokerage firm buys 100 shares of Quick Flip Inc. Later that day, the investor sells 100 shares of Quick Flip Inc. Without other holdings in Quick Flip Inc, would this sequence of transactions be considered a day trade?

+4

Answers (1)

Know the Answer?

Rodriguez · Answer 1

Yes this sequence of transaction is considered as a day trade.

Explanation:

As per the definition of the day trading, Day trading is defined as the purchase and sale of a security within a single trading day. It can occur in any marketplace but is most common in the foreign exchange (forex) and stock markets.

As per this definition, the trading has to be done such that the purchase and sale is made on the same day. As indicated in the question, this is the case so the given sequence of transactions is a day trade.