- April 2026 brought a revival of speculative trading, which is explained by the introduction of a new rule US Securities and Exchange Commission.
- The regulator has lifted the requirement to maintain at least $25,000 in their accounts for traders who made four or more intraday trades within five business days.
In April, retail investors returned to speculative trading, fueled by the rise in risk assets and changes in US legislation that removed a key barrier to active trading. According to CNBC, these circumstances have already caused sharp fluctuations in the prices of individual stocks in the “memo trading” sphere.
Commission on Securities and Exchange approved FINRA’s proposal to repeal the “method” day trading rule. Previously, it required traders to maintain at least $25,000 in their accounts if they made four or more day trades within five business days.
This rule was introduced after the dot-com crash and is now outdated. The new system replaces this threshold with an intraday margin system, allowing traders with smaller balances to participate more actively in trading.
Under this system, traders will be required to maintain sufficient capital based on their actual market exposure, shifting the focus from “how often do you trade” to “how much risk do you take.”
This change opens the door to more investors with smaller accounts, allowing them to trade more actively while maintaining the protection of modern margin and risk control measures, commented TradeStation’s Head of Trading Operations, Adam Cohen.
JPMorgan analysts believe the regulatory change will help boost retail sales growth in the coming months.
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