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why do you need $25,000 for day trading in the US?

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@andy_colgate_nottinghill - 11 months ago - Forex Education

I learnt that day traders in the United States have to deposit $25k with the regulator before they are allowed to trade, please why is this so?

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@scooter_mx - 11 months ago

The Pattern Day Trading (PDT) $25k rule is in place to discourage unqualified persons from trading the US stock market. The US Financial Industry Regulatory Authority (FINRA) are the ones that put the $25k rule in place. They want to be sure that you have the financial capacity to absorb any losses that may occur when trading stocks.

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@skyfall - 11 months ago

They don't want you to trade, the US authorities prefer people go into investing rather than trading.

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