Pattern Day Trader rule is a designation from the SEC that is given to traders who make four or more day trades in their account over a five-day period.
provided that the number of day trades represents more than 6% of the customer’s total trades in a margin account for that same five-business-day period. This rule is a minimum requirement, and somebroker-dealersmay use a slightly broader definition ...
These amendments introduced the "Pattern Daytrader Rule", which is still in effect today. What is the "pattern daytrader rule"? This rule basically prohibits any trader with less than $25,000 of equity in their brokerage account from making more than 3 round-trip "day trades" per week (5...
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