Day Trading
What is Day Trading?
Buying and selling securities within the same trading day.
Understanding Day Trading
Day traders aim to profit from short-term price moves and close all positions before the market closes. They often use leverage and trade frequently.
Studies of individual day traders consistently find that most lose money over time, once trading costs and taxes are included. U.S. margin rules for day traders changed in 2026 (see below).
In 2026
For decades, U.S. brokers had to label anyone making four or more day trades within five business days a "pattern day trader" and require at least $25,000 in the account. That rule ended on June 4, 2026.
The SEC approved FINRA's replacement in April 2026. Instead of counting trades, brokers now apply intraday margin standards: you must keep enough equity to cover your actual market exposure at every point during the day. Brokers can still set stricter requirements of their own.