Key changes in the proposal:
- Eliminates the PDT designation entirely — No more counting day trades or the "4 in 5" trigger.
- Removes the hard $25,000 minimum equity requirement for day trading.
- Replaces it with real-time "intraday margin" rules — Brokers will monitor your account's risk throughout the day based on your actual positions and market exposure.
- Instead of a fixed $25k threshold, you'll be subject to standard maintenance margin requirements applied intraday. Brokers can block trades or require you to add funds/liquidate if your account goes into a margin deficit during the day.
This shifts from a rigid "you must have $25k" rule to a risk-based, real-time system that modern brokers can already handle with today's technology.
What This Means for Traders
| Aspect | Old PDT Rule | New Intraday Margin System |
|---|---|---|
| Minimum Equity | $25,000 required | No fixed minimum (likely much lower, e.g. ~$2k depending on broker) |
| Day Trade Limits | 3 trades/5 days if under $25k | No limits based on trade count |
| Monitoring | Based on trade count | Real-time risk calculation |
| Who it affects | Margin accounts only | Still margin accounts (cash accounts unchanged) |
Positive for small traders: People with $5k–$20k accounts will be able to day trade more freely without restrictions or switching to cash accounts.
Potential downsides: Higher risk for inexperienced traders who could lose money faster with leverage. Brokers will still enforce margin calls and may have their own stricter house rules.
Current Status (as of April 14, 2026)
This is not yet fully effective. FINRA filed the proposal (SR-FINRA-2025-017), and the SEC has an approval deadline around today or April 16. Many sources expect approval soon, with an implementation period afterward (possibly weeks to months as brokers update systems).
The "BREAKING" post is likely reacting to the imminent SEC decision.
If you're a day trader, check with your broker for their exact timeline and new policies once approved. This is one of the biggest changes to retail trading rules in over 20 years.
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