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Day Trading MCQs

Why is it important for day traders to close out all positions before the day is over?

If they do not, they are no longer day traders.

Taxes are lower if positions are closed out.

Overnight changes in the demand for the security can drastically affect the price.

They are required to if trading on margin.

Answer

Correct Answer: Overnight changes in the demand for the security can drastically affect the price.

Explanation:

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