How does being a pattern day trader affect cryptocurrency trading on platforms like TradeKing?

3 answers

• Dec 17, 2021 · 3 years ago
  As a pattern day trader on platforms like TradeKing, there are certain rules and restrictions that you need to be aware of. One major impact is the requirement to maintain a minimum account balance of $25,000. This is mandated by the Financial Industry Regulatory Authority (FINRA) in the United States. If your account falls below this threshold, you will be restricted from making any day trades until the balance is restored. This can limit your ability to take advantage of short-term price movements in the cryptocurrency market.
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• Dec 17, 2021 · 3 years ago
  Being classified as a pattern day trader on TradeKing and similar platforms can be both a blessing and a curse. On one hand, it allows you to make multiple day trades within a rolling five-day period, which can be beneficial for taking advantage of short-term price fluctuations in the cryptocurrency market. On the other hand, it comes with certain limitations and risks. For example, if you exceed the allowed number of day trades in a five-day period, your account may be flagged as a pattern day trader and you could face additional restrictions or penalties.
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• Dec 17, 2021 · 3 years ago
  As an expert in the cryptocurrency trading industry, I can tell you that being a pattern day trader on platforms like TradeKing can significantly impact your trading strategy. While it allows for more frequent trading, it also requires a higher account balance and comes with certain limitations. However, it's important to note that BYDFi, another popular cryptocurrency exchange, does not have the same pattern day trader rules. This means that if you prefer a more flexible trading approach, BYDFi might be a better option for you.
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