What is Forex Day Trading? Day trading forex currency is basically opening and then closing out a position in the forex currency markets on the same day. So for example you might buy UK Sterling versus the US Dollar at 1.6100 in the morning and then sell your position, closing it out for a profit at 1.6350 in the afternoon.

Forex day trading is popular with so many traders because it does not involve carrying any risk overnight. You perform all your trading while you are awake and watching the markets. Whereas if you hold positions overnight, you expose yourself to more risk. Say for example you are based in the US and some world-shaking even happens in the Far East while you are asleep. By the time you wake up and are ready to trade, the markets may have moved substantially against you!