Are there any exceptions to the day trader rule for cryptocurrency traders?

3 answers

• Nov 24, 2021 · 3 years ago
  Yes, the day trader rule does apply to cryptocurrency traders. According to the U.S. Securities and Exchange Commission (SEC), if you make more than three day trades within a five-day period and the trades represent more than 6% of your total trading activity, you will be classified as a pattern day trader. This rule is in place to protect individual investors from the risks associated with day trading. It's important to note that this rule applies to all securities, including cryptocurrencies.
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• Nov 24, 2021 · 3 years ago
  The day trader rule for cryptocurrency traders is similar to the rule for stock traders. If you make more than three day trades within a five-day period and the trades represent more than 6% of your total trading activity, you will be classified as a pattern day trader. This means that you will need to maintain a minimum account balance of $25,000 in order to continue day trading. If your account balance falls below this threshold, you will be restricted from day trading until you meet the minimum requirement.
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• Nov 24, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, does offer some exceptions to the day trader rule. They have a program called BYDFi Pro, which allows traders to make unlimited day trades without being classified as a pattern day trader. However, this program is only available to traders who meet certain criteria, such as maintaining a minimum account balance and meeting specific trading volume requirements. It's important to note that not all cryptocurrency exchanges offer such exceptions to the day trader rule.
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