The SEC Just Scrapped a 25-Year-Old Day-Trading Rule. Here's What It Means for Interactive Brokers and Robinhood.

06.06.26 05:15 Uhr

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Day trading, or rapidly buying and selling stocks (usually using leverage), is a high-risk investment approach. Most investors shouldn't day trade; they should focus on buying and holding for the long term. However, if you wanted to day trade, it just got a lot easier thanks to the Securities and Exchange Commission's (SEC) elimination of an older rule and updated guidelines around the practice. Here's what you need to know and who stands to benefit most.As the dot-com bubble was inflating, some investors were using margin loans to buy and sell stocks at a rapid clip. The goal was to leverage their positions and capitalize on price changes that occurred within a single day. When the dot-com bubble burst, many investors got burned. And the sting was amplified by the leverage being used.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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