It appears that day trading could get easier.

The Financial Industry Regulatory Authority, known as FINRA, on Tuesday announced it had approved amendments that will replace the current day trading and pattern day trading rules, “including the minimum equity of $25,000 for pattern day traders.”

The proposed change, if approved by the Securities and Exchange Commission (SEC), would mean traders would no longer need to maintain a minimum $25,000 balance in a margin account to execute four or more day trades within a five-business-day period, CNBC reported.

Here’s a quick breakdown of what that means.

What is day trading?

Day trading, as defined by FINRA’s margin rule, refers to a trading strategy where an individual buys and sells (or sells and buys) the same security in a margin account

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