Why is $25,000 required to day trade?

The $25,000 PDT rule applies to US stock day trading: under that, you're limited to three round-trip trades per five days. Forex and futures exempt it since no "pattern day trader" label. Still, $25k provides margin buffer for multiple positions without forced exits. Smaller accounts work via swing trading or forex micros. Rule protects amateurs from leverage ruin—respect it by sizing properly regardless.