Skip to main content
edited body
Source Link
Ben Miller
  • 116.1k
  • 30
  • 330
  • 425

In the U.S., the rules for day trading are set by the Financial Industry Regulatory Authority (FINRA). FIRNA FINRA has a page detailing the day trading rules:

Day-Trading Margin Requirements: Know the Rules

According to this page, a day trade is defined as buying and then selling (or selling short and then buying) a security on the same day. An investor is then considered a pattern day trader the first time he or she does four day trades in a five day period, if the day trades are at least 6% of the total trading activity.

Based on this definition, the account in the hypothetical scenario you've posted would be flagged as a pattern day trader.

In the U.S., the rules for day trading are set by the Financial Industry Regulatory Authority (FINRA). FIRNA has a page detailing the day trading rules:

Day-Trading Margin Requirements: Know the Rules

According to this page, a day trade is defined as buying and then selling (or selling short and then buying) a security on the same day. An investor is then considered a pattern day trader the first time he or she does four day trades in a five day period, if the day trades are at least 6% of the total trading activity.

Based on this definition, the account in the hypothetical scenario you've posted would be flagged as a pattern day trader.

In the U.S., the rules for day trading are set by the Financial Industry Regulatory Authority (FINRA). FINRA has a page detailing the day trading rules:

Day-Trading Margin Requirements: Know the Rules

According to this page, a day trade is defined as buying and then selling (or selling short and then buying) a security on the same day. An investor is then considered a pattern day trader the first time he or she does four day trades in a five day period, if the day trades are at least 6% of the total trading activity.

Based on this definition, the account in the hypothetical scenario you've posted would be flagged as a pattern day trader.

Source Link
Ben Miller
  • 116.1k
  • 30
  • 330
  • 425

In the U.S., the rules for day trading are set by the Financial Industry Regulatory Authority (FINRA). FIRNA has a page detailing the day trading rules:

Day-Trading Margin Requirements: Know the Rules

According to this page, a day trade is defined as buying and then selling (or selling short and then buying) a security on the same day. An investor is then considered a pattern day trader the first time he or she does four day trades in a five day period, if the day trades are at least 6% of the total trading activity.

Based on this definition, the account in the hypothetical scenario you've posted would be flagged as a pattern day trader.