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Traders just gain/lose money from/to other traders, and breathe air that would more productively used by burger flippers at McD. Click below to let us know you read this article, and wikiHow will donate to the Wikimedia Foundation on your behalf. Thanks for helping us achieve our mission of helping people learn how to do anything.
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The SEC requires that pattern day traders maintain at least $25,000 in equity in their accounts. Under the SEC rules, you’re a pattern day trader if you day-trade four or more times within five business days and the day trades represent more than 6% of your total trading activity in that same five-day period. Day trading, defined by the SEC, is buying and selling or short-selling and buying the same security on the same day.
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