What is the PDT rule and how does it apply to cash accounts in the cryptocurrency industry?

1 answers

• C.MelAug 04, 2023 · 2 years ago
  The PDT rule, or Pattern Day Trading rule, is a regulation that applies to stock and options traders in the United States. It requires traders to maintain a minimum account balance of $25,000 in order to make more than three day trades within a rolling five-day period. However, it's important to note that the PDT rule does not directly apply to cash accounts in the cryptocurrency industry. Cash accounts in the cryptocurrency industry are not subject to the PDT rule and do not have any minimum balance requirements. Traders with cash accounts can make unlimited day trades without any restrictions. However, it's still important to exercise caution and proper risk management when day trading, as the cryptocurrency market can be highly volatile and unpredictable.
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