Retail traders can now day trade without a $25,000 minimum balance

Retail investors with accounts under $25,000 can now execute four or more day trades within a five-business-day period without facing an account freeze. This change follows the SEC's approval of a FINRA rule change to eliminate the pattern day trader (PDT) designation and its accompanying $25,000 minimum equity requirement. The original 2001 rule was designed before the rise of zero-days-to-expiration options and modern intraday activity. Under the new dynamic intraday margin framework, margin requirements are based on intraday exposure rather than fixed account thresholds. Broker-dealers must implement systems to block trades in real-time if they exceed margin limits or run end-of-day risk calculations. Accounts that repeatedly fail to cover intraday margin deficits within five business days will face a 90-day restriction on increasing short positions or debit balances.