Regulators are in the process of tearing down one of the most hated rules in retail trading: the $25,000 pattern day trading rule. Since 2001, if you wanted to make four or more day trades in five days, you had to keep at least $25K in your account.
That rule came after the dot-com bust, when regulators thought small traders were blowing themselves up chasing internet stocks. FINRA just voted to replace it with an intraday margin framework basically, your buying power will now depend on the margin requirements of the positions you take that day, not some arbitrary equity threshold. It still needs SEC approval, but the $25K floor looks like it’s on its way out.Market makers and brokers are going to love this. More volume, more spreads, more options flow, it’s free money for them. But the average retail trader? They’re about to be stuck on a treadmill that drains their account. One bad trade, one bad fill, and with no $25K buffer, they’re staring at a margin call.What this really does is pour gasoline on the fire. It pushes smaller accounts into overtrading, chasing leverage, and learning the hard way how unforgiving intraday swings can be. The ones who walk away with the winnings won’t be retail, it’ll be the firms making the markets. And trust me, the house always wins.Source: StockMarket.News
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