How does Robinhood's $25k day trading rule apply to trading digital currencies?

1 answers

• Nov 24, 2021 · 3 years ago
  As an expert in the field, I can confirm that Robinhood's $25k day trading rule does apply to trading digital currencies. If you make more than three day trades within a five-day period and your account value is below $25k, you will be classified as a pattern day trader. This means you will need to maintain a minimum account balance of $25k and can only trade with settled funds. The purpose of this rule is to protect traders from excessive risk-taking and to ensure they have enough capital to cover potential losses. However, it's worth noting that this rule only applies to margin accounts and not to cash accounts.
  621311