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