Day Trading Rules and Regulations
Understanding the regulatory environment around day trading is crucial. In the U.S., the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) have specific rules for "pattern day traders."6 You fall into this category if you fit the following:
Make four or more "day trades" within five business days
These day trades make up more than 6% of your trading activity in the same period
Use a margin account (an account that lets you borrow money from your
