Stock Options!
- Stephen H Akin
- 2 days ago
- 4 min read
Updated: 13 hours ago
Calls, Puts and Option Strategies
Akin Investments gives guidance on FINRA’s “pattern day trader” rules, including the 4-or-more day trades in 5 business days threshold, the $25,000 minimum equity requirement for margin accounts, and limits on day-trading buying power and margin calls. The firm emphasizes that day trading is high risk and generally not appropriate for those with limited resources or low risk tolerance.
Akin Investments, LLC a financial advisory firm offering planning and wealth management services in Charleston, South Carolina.
Founder Stephen (Steve) Akin has 40 years as a registered investment professional. Steve has been fetured in media appearances discussing day trading topics.
Day trading overview
Their day-trading article defines day trading per FINRA: buying and selling the same security in a margin account on the same day, and notes the rules apply to stocks and options.
It states day trading in a cash account is not permitted under FINRA’s framework for “day trading,” and clarifies settlement/payment rules for cash accounts per Regulation T.
Pattern day trader rules
You are considered a pattern day trader if you execute four or more day trades within five business days and those trades exceed 6% of your margin-account trades for that period. Firms may also designate you based on reasonable belief of your intent.
Pattern day traders must maintain at least $25,000 equity in a margin account before day trading; exceeding buying power can trigger a day-trading margin call with deadlines and potential trading restrictions. Firms may impose stricter “house” requirements.
Risk emphasis
The article highlights that day trading is extremely risky, should not be funded with essential savings, and requires understanding of market mechanics and brokerage practices; it points readers to FINRA’s Day-Trading Risk Disclosure Statement (Rule 2270).
There may be a change comming:
News Release
September 24, 2025
Report From FINRA Board of Governors Meeting – September 2025
Board Approved Amendments for Pattern Day Trading Rules, and Received Updates on FINRA Forward, Consolidated Audit Trail and Cybersecurity
WASHINGTON—FINRA’s Board of Governors met September 17-18. The Board announced the approval of four rule proposals, approved proposed amendments to FINRA’s pattern day trading rules, and received updates on the FINRA Forward initiative, the Consolidated Audit Trail and FINRA’s cybersecurity program.
Rulemaking
The Board received a progress update on the FINRA Forward initiatives to improve FINRA’s effectiveness and efficiency in pursuing its mission. As part of the initiative to modernize FINRA’s rules, the Board’s Regulatory Policy Committee convened in July and approved four rule proposals in order to accelerate FINRA’s rule modernization efforts as part of FINRA Forward. The following approved proposals have been or will be filed with the Securities and Exchange Commission (SEC):
several amendments to FINRA corporate financing rules to promote capital formation without lessening investor protections;
a revised proposal for outside activities requirements;
an amended gifts proposal, which would further increase the gift limit from $250 to $300; and
a revised proposal to amend the Capital Acquisition Broker (CAB) rules to allow CABs to represent buyers as well as sellers in specified private placement and M&A transactions.
Continuing its focus on FINRA Forward, at its meeting this week, the Board approved amendments that will replace the day trading and pattern day trading rules, including the minimum equity of $25,000 for pattern day traders, with an intraday margin rule that applies the existing maintenance margin rules to intraday exposure. The amendments are a result of FINRA initiating a retrospective review to assess whether the rules needed to be adapted for today’s technological and trading environment. The proposal incorporates feedback FINRA received from member firms, industry groups and investors from the Regulatory Notice launching the retrospective review. The amendments will be filed with the SEC for approval.
The Board also discussed a forthcoming Regulatory Notice that will reduce unnecessary burdens and consolidate prior guidance regarding the use of negative consent for the bulk transfer or assignment of customer accounts.
“The Board’s recent approval and discussion of various rule proposals are a key part of FINRA's ongoing efforts to enhance its regulatory effectiveness and efficiency through the FINRA Forward initiative,” said FINRA Board Chair Scott Curtis. “The Board and FINRA’s leadership team will continue to prioritize helping enable member firms to better serve investors and facilitate strong and fair capital markets.”
Additional Updates
The Board received an update on FINRA’s cybersecurity program and recent developments regarding the Consolidated Audit Trail.
The Board also reaffirmed FINRA’s Financial Guiding Principles, an integral part of FINRA’s commitment to financial transparency.
The next FINRA Board meeting is scheduled for December. More information about the Board's operations, including membership and responsibilities of its committees, is available here.
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