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Day Trading MCQs

What is the SEC definition of a "pattern day trader"?

A trader who profits from short selling

A trader who buys and sells on the same trading day, and does this four or more times within a 5 day period

A trader who sells and buys stock options instead of stocks

A trader who makes profits; the ones who lose money are not day traders

Answer

Correct Answer: A trader who buys and sells on the same trading day, and does this four or more times within a 5 day period

Explanation:

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