FINRA Replaces Day Trading Margins with New Intraday Standards for Traders
Published Date: 1/14/2026
Notice
Summary
FINRA is updating its margin rules by replacing the old day trading margin requirements with new intraday margin standards. This change affects traders who buy and sell stocks within the same day, aiming to modernize how margin is calculated and managed. The new rules could impact how much money traders need to keep in their accounts starting soon after approval.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Ends $25,000 Pattern Day Trader Rule
FINRA would delete the current "pattern day trader" day trading margin provisions, removing the $25,000 minimum equity requirement and the related day-trading buying power rules. The current definition that designates a pattern day trader as a customer who executes four or more day trades within five business days would be replaced by the new intraday margin framework.
New Intraday Margin Deficit Requirement
Under the proposed intraday margin rule, your broker would be required to determine any "intraday margin deficit" for a margin account on days with certain transactions and require that deficit to be satisfied as promptly as possible. An intraday margin deficit remains outstanding until it is satisfied or until immediately after the close of business on the fifteenth business day after the deficit occurred.
Five-Day Cure, Net Capital Deduction, 90-Day Freeze
If an intraday margin deficit is not satisfied within five business days, a member must deduct that deficit in its net capital computations for up to ten business days. If a customer makes a practice of failing to satisfy deficits, the member must freeze the customer from creating or increasing short positions or debit balances for 90 calendar days (or until the deficit is satisfied). Small deficits that do not exceed the lesser of 5% of the account equity or $1,000 are not treated as a "practice."
Real-Time Blocking Or End‑of‑Day Checks
Members would be allowed to use real-time monitoring to block trades that would create or increase intraday margin deficits, or alternatively compute intraday deficits at the end of the day. Brokers could therefore stop intended trades in real time or enforce deficits after the trading day ends.
Portfolio Margin Accounts Under $5M Face Intraday Rules
For portfolio margin accounts, members must include procedures to determine and monitor intraday risk. Specifically, any portfolio margin account with less than $5 million in equity must maintain margin for intraday risk that is substantially similar to the margin the member requires for positions existing at the end of the day.
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