trading platforms.Day trading comes with rules. More specifically, the pattern day trading rules. The main pattern day trader rule is imposed by the Securities and Exchange Commission for traders in the USA.Pattern day trading only applies to certain trades (i.e., stock and equity options).
It is, therefore, the process of making more than 4-day trades within 5 business days in total. These trades must be completed using a margin account.As a pattern day trader, you are subject to regulation that prevents you from making excessive trades.
The pattern day trading rules refer to the fact that as a pattern day trader, you must have a minimum of $25k in your account.The $25k mentioned does not have to be directly available in cash.Read more on dumblittleman.com