Which of the following is not one of the requirements to be considered a trader in securities for tax purposes?

To qualify as a trader in securities for tax purposes, the IRS has established certain criteria. One of the main requirements is that the activity must be substantial, indicating a significant level of engagement in trading. Additionally, transactions must be regular and continuous, reflecting an ongoing trading strategy rather than sporadic activity. Traders also typically engage in transactions with the intention of taking advantage of short-term market movements, which underscores the active nature of their trading.

Choosing "transactions must be for a large amount" is correct because the threshold for activity does not specifically set a requirement on the size of individual transactions. Instead, it emphasizes the frequency and the intention behind the trading. What matters more is the scale and frequency of the trading activities rather than the magnitude of the sums involved in each transaction. Therefore, focusing on transaction size does not align with the IRS's criteria for defining trading activity.