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The Financial Industry Regulatory Authority is drafting a proposal that would overhaul the United States’ two-decade-old “pattern day trading” rule, people familiar with the matter said. The plan would lower the minimum equity investors must hold in a margin account to make more than three day trades in five business days to about $2,000, far below the current $25,000 requirement. If adopted, the change would effectively lift the main barrier that restricts retail investors with modest balances from borrowing to trade equities and options actively. Broker-dealers would be able to set their own margin requirements for frequent traders, replacing the uniform federal threshold that has been in place since 2001.
This is huge! Finally. This was a stupid ass rule created after the financial crisis because they blamed volatility and flash crashes on uneducated day traders. Imagine they did this at casinos where u can only make 4 bets a week. So why they make this rule for trading? Totally https://t.co/LH01Ih2t53
🎲 🎲 BREAKING: The Financial Industry Regulatory Authority is looking to rework the “pattern day trading” rule that limits investors with less than $25,000 in their margin account from borrowing to trade four or more times in a five-day period. In a proposal being prepared
RETWEET IF YOU LOVE IT, HOW AWESOME IS THIS BREAKING NEWS: @StocksToTrade @sttbreakingnews The Financial Industry Regulatory Authority is looking to rework the “pattern day trading” rule that limits investors with less than $25,000 in their margin account from borrowing to trade
