How does Robinhood handle 3 day trades in the context of cryptocurrency trading?

3 answers

• Nov 24, 2021 · 3 years ago
  When it comes to day trading cryptocurrency on Robinhood, there are certain restrictions in place. Robinhood's policy states that if you make more than 3 day trades within a 5-day period, you will be flagged as a pattern day trader. Once flagged, you must maintain a minimum account balance of $25,000 to continue day trading. If your account balance falls below this threshold, you will be restricted from day trading until the balance is restored. It's important to note that these restrictions only apply to margin accounts, and not to cash accounts. So, if you're using a cash account, you can make unlimited day trades without any restrictions.
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• Nov 24, 2021 · 3 years ago
  Robinhood handles 3 day trades in cryptocurrency trading by implementing the pattern day trading rule. This rule is in place to protect inexperienced traders from excessive risk-taking. If you make more than 3 day trades within a 5-day period, Robinhood will flag you as a pattern day trader. As a pattern day trader, you will be required to maintain a minimum account balance of $25,000. If your account balance falls below this threshold, you will be restricted from day trading until the balance is restored. This rule applies to both stocks and cryptocurrencies.
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• Nov 24, 2021 · 3 years ago
  As an expert from BYDFi, I can tell you that Robinhood follows the pattern day trading rule for cryptocurrency trading as well. If you make more than 3 day trades within a 5-day period, you will be classified as a pattern day trader. This classification comes with certain restrictions. You will need to maintain a minimum account balance of $25,000 to continue day trading. If your account balance falls below this threshold, you will be restricted from day trading until the balance is restored. It's important to be aware of these restrictions and plan your trading strategy accordingly.
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