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Question About the Pattern Day Trading Rule? - Stock Trading and Other Things
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Question About the Pattern Day Trading Rule?

Does the Pattern day trading rule apply to day trading Binary Options?
also, are there any free accounts where i can paper trade binary options?

Public Comments

1. Depends where you are trading the Binary Options. Chances are that you are trading US options that are regulated under the SEC, in which case yes, the Pattern Day Trading rule applies. As an alternative, futures and futures options that are regulated by the CFTC instead of the SEC does not have this rule.

2. Pattern Day Trading rule that applies to anyone who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any five consecutive business day period. A pattern day trader is subject to special rules. The main rule is that in order to engage in pattern day trading you must maintain an equity balance of at least $25,000.