Short Term Trading

Definition ∞ Short term trading involves buying and selling financial assets with the intention of profiting from rapid price movements over brief periods, typically ranging from minutes to a few days. Traders using this strategy aim to capitalize on small market fluctuations rather than long-term asset appreciation. It requires frequent market monitoring and quick decision-making. This approach is characterized by high transaction volumes.
Context ∞ Short term trading is a pervasive activity in cryptocurrency markets, often driving significant price volatility and liquidity, and is frequently reported in market news. Discussions often involve the technical analysis tools and indicators used by traders to identify entry and exit points. A key debate concerns the impact of high-frequency and algorithmic short term trading on overall market stability and fairness. Regulatory efforts sometimes target practices associated with short term speculation, such as wash trading or market manipulation.