Definition
Holding trades for several days to a few weeks to try to catch a larger price swing.
The story
A swing trader might buy near the bottom of a range on Tuesday and aim to sell near the top the following week. Because positions are held overnight, they're exposed to gaps from news that breaks outside trading hours.
Why markets watch it
It sits between day trading and long-term investing.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms