Core Points - FINRA has approved amendments to replace current day trading rules, potentially eliminating the $25,000 minimum equity requirement for pattern day traders if approved by the SEC [1][6][7] - The proposed changes aim to adapt to the modern trading environment and incorporate feedback from various stakeholders [6][7] Day Trading Definition - Day trading involves buying and selling the same security within the same day to profit from small price movements, applicable to all securities including options [3] - Day trading in a cash account is prohibited; all securities must be fully paid for before sale [4] Pattern Day Trader Criteria - A trader is classified as a pattern day trader if they execute four or more day trades within five business days, with these trades representing over 6% of total trades in that period [5] Rationale for Changes - The changes are part of FINRA's efforts to enhance regulatory effectiveness and efficiency, responding to the needs of member firms and investors [6][7] - This would mark one of the most significant updates to trading rules since the introduction of the pattern day trading rule in 2001, which was designed to protect inexperienced investors [7]