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• How Does Rule 431 Affect Daytraders? by Paul Carlson

  ARTICLE SYNOPSIS ...How Does Rule 431 Affect Daytraders? by Paul Carlson Like me, many of you may have been concerned when you received letters from your brokers describing the new minimum margin requirements of $25,000 for pattern daytraders. In those letters, your brokers described the definition of a pattern daytrader as someone who made four day trades in five days. While this definition might not classify you as a daytrader per se, when you looked at your account, you saw several occasions when you would have triggered the rule had it been in effect at that time. You may have only $5,000 or $10,000 in your ...

AUTHOR: Paul CarlsonDATE: JUL 2002SUBJECT: Real World