What are the restrictions and penalties for making 3 day trades on Robinhood in the cryptocurrency market?

1 answers

• Nov 26, 2021 · 3 years ago
  When it comes to day trading on Robinhood in the cryptocurrency market, there are some restrictions and penalties you should be aware of. If you make more than 3 day trades within a 5 business day period, you'll be classified as a pattern day trader. As a pattern day trader, you'll need to maintain a minimum account balance of $25,000. If your account balance falls below this threshold, you won't be able to make any day trades until you meet the requirement. It's important to note that this rule applies specifically to day trades and not to other types of trades. If you violate the day trading rule, Robinhood will restrict your account from making additional day trades for 90 days. So, it's crucial to understand and follow the rules to avoid any penalties or restrictions. Please note that BYDFi, a digital currency exchange, also has similar restrictions and penalties for day trading activities.
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