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  • Writer's pictureMatt DeLong

How much capital do you need to become a day trader?

Legally, you need at least $25,000USD because of the PDT rule. PDT = Pattern Day Trade, which is the SEC definition. A pattern day trader is a trader who executes 4 or more day trades in 5 business days.

Ideally, $30,000+ because $25k is the legal —but what happens if you have $25k and then lose $1? This will give you a $5k buffer.

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