Core Viewpoint - The Financial Industry Regulatory Authority (FINRA) has approved a proposal to replace the $25,000 minimum equity rule with an "intraday margin rule," which could significantly change how small accounts engage in day trading if approved by the U.S. Securities and Exchange Commission [1][3]. Group 1: Changes in Trading Rules - The new intraday margin rule will allow day traders' buying power to be determined by their actual margin exposure rather than a fixed equity minimum [3][4]. - Previously, day traders were required to maintain a minimum balance of $25,000 in a margin account to trade, a rule established during the dot-com boom to mitigate risks associated with volatile internet stocks [4]. Group 2: Implications for Day Traders - The intraday margin rule enables day traders to utilize more of their funds actively, facilitating quicker market moves such as buying dips or selling spikes, even with smaller accounts [5]. - This rule provides greater flexibility for day traders, as their trading capacity will be based on actual margin exposure throughout the day, making it easier to manage risk and respond to market changes [6]. - For beginners, the reduced financial commitment associated with the new rule may lower the intimidation factor when testing short-term trading strategies [6].