Are there any restrictions or limitations for cryptocurrency traders flagged as pattern day traders on Robinhood?

3 answers

• Nov 29, 2021 · 3 years ago
  As a pattern day trader on Robinhood, there are certain restrictions and limitations that you need to be aware of. One of the main restrictions is the requirement to maintain a minimum account balance of $25,000. This is a regulatory requirement set by the Financial Industry Regulatory Authority (FINRA) for pattern day traders. If your account balance falls below this threshold, you will not be able to day trade and may be subject to additional restrictions. It's important to note that this requirement applies to all pattern day traders, regardless of whether they are trading cryptocurrencies or other assets.
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• Nov 29, 2021 · 3 years ago
  Yes, there are restrictions for cryptocurrency traders flagged as pattern day traders on Robinhood. One of the limitations is the number of day trades you can make within a rolling five business day period. If you make more than three day trades within this period and your account balance is below $25,000, you will be classified as a pattern day trader and may be subject to restrictions. These restrictions include being limited to only making day trades with settled funds and being required to maintain the $25,000 minimum account balance.
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• Nov 29, 2021 · 3 years ago
  While I can't speak specifically for Robinhood, I can provide some general information about restrictions and limitations for cryptocurrency traders flagged as pattern day traders. Pattern day traders are subject to the same regulations and restrictions as day traders in other markets. This includes the requirement to maintain a minimum account balance of $25,000 and the limitation on the number of day trades that can be made within a rolling five business day period. It's important to check with your specific trading platform or broker for the exact restrictions that may apply to you.
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