Jul. 21 at 9:59 PM
Rumour: US regulators are finalizing plans to replace the "pattern day trading" rule
Pattern Day Trading:
- Execute 4+ day trades within 5 business days
- Use Margin account
- Those trades make up more than 6% of your total trading activity during that period
-
$25,000 minimum equity
- Violation of above can trigger a 90-day restriction
- Adopted in 2001 to curb excessive risk and emotional trading
Regulators are considering:
- Lowering the threshold to
$2,000 instead of
$25,000
- Eliminating the 3-trade maximum
- Allowing brokerages to set their own margin requirements
$HOOD $MS $SCHW $IBKR $CBOE