Accounts & CustomersQuestion 77 of 125
A pattern day trader is generally required to maintain minimum equity in a margin account of at least:
a.$2,000
b.$10,000
c.$25,000
d.$100,000
Explanation
FINRA rules require an account designated as a pattern day trading account (four or more day trades within five business days meeting the threshold) to maintain minimum equity of at least $25,000. This amount must be in the account before day trading may continue and provides an added cushion for the frequent intraday activity.
Law Reference: Securities Exchange Act of 1934Practice all 125 questions free — no signup required.
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