What are the consequences of violating the PDT rule when trading digital currencies on TradeZero?

3 answers

• Nov 29, 2021 · 3 years ago
  Violating the PDT rule when trading digital currencies on TradeZero can have serious consequences. The PDT rule is a regulation imposed by the U.S. Securities and Exchange Commission (SEC) that requires traders to maintain a minimum account balance of $25,000 in order to execute more than three day trades within a rolling five-day period. If you violate this rule, TradeZero may restrict your account from making further day trades for 90 days. This restriction can significantly limit your trading opportunities and potential profits.
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• Nov 29, 2021 · 3 years ago
  When you violate the PDT rule on TradeZero, the platform will automatically flag your account as a pattern day trader. This flagging will restrict your account from executing any day trades for 90 days. It's important to note that this restriction applies specifically to day trades and not to other types of trades. So, you can still engage in swing trading or long-term investing during this period. However, if you continue to violate the PDT rule after the initial restriction, TradeZero may take further action, including the potential closure of your account.
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• Nov 29, 2021 · 3 years ago
  As a third-party expert, I can provide some insights into the consequences of violating the PDT rule when trading digital currencies on TradeZero. When you violate this rule, TradeZero will enforce the 90-day restriction on your account, preventing you from executing day trades. This restriction is in line with the regulations set by the SEC to protect traders and maintain market stability. It's crucial to understand and abide by the PDT rule to avoid any negative impact on your trading activities.
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