NSE Introduces Day trading

The Nairobi Securities Exchange (NSE) introduces day trading, allowing traders to buy and sell shares several times in a single day, and make quick profits from small price movements.

With the introduction of day trading, the NSE hopes to increase turnovers and attract new investors to the With the introduction of day trading, the NSE hopes to increase turnover and attract new investors to the bourse.

“Day trading is a welcome move for local investors who have previously lobbied for the activation of the intraday trading, as they seek to take advantage of intra-day price movements and increase their profit margins. We are confident of a bullish market performance going forward,” said NSE chief executive Geoffrey Odundo in an earlier statement

In a bid to encourage uptake, the NSE is offering day traders a 5% discount on the commission due to it per trade on the second leg of a transaction — meaning it will be levied at 0.114 percent compared to average trades, which are set at 0.12 percent.

What does it mean for you

Day trading is a well-established practice in many stock exchanges worldwide and has enabled traders to make substantial profits whenever stock prices move up and down.

But it carries a significant amount of risk and is recommended for experienced traders. If you plan to day trade, please take your time and research, and seek advice from your stockbroker.

If you want to learn more about how to start trading shares at the NSE, read this article I wrote to help you get started.