In the U.S., Pattern Day Trading (PDT) rules limit how often you can buy and sell the same stock or ETF on the same day. These rules help protect investors from taking excessive short-term risks.
In Simple Terms
A day trade means:
Buying and selling the same stock or ETF on the same day
Making 3 day trades within 5 consecutive business days reaches your limit
A 4th day trade would flag your account under PDT rules
US brokers are required to enforce this rule by restricting accounts unless they maintain at least $25,000 in equity.
Example
Let’s say you trade during one week:
Monday: Buy and sell Apple → 1 day trade
Tuesday: Buy and sell Tesla → 2 day trades
Wednesday: Buy and sell Amazon → 3 day trades
You’ve now reached your limit.
Any new same-day trade within the next few days would trigger PDT restrictions.
How CUSP Keeps You Safe
CUSP automatically monitors your trading activity to make sure you never go over the PDT limit.
The app tracks your day trades in real time.
If you get close to the limit, CUSP will warn you.
If needed, CUSP will block a trade that would exceed the limit — protecting your account before it’s flagged.
This ensures your account is never frozen or restricted under PDT rules.
Cash Breakdown in the App
You can view a detailed breakdown of your cash balance directly in your portfolio.
It shows:
Available to withdraw: Cash ready to use or transfer
Unsettled cash: Proceeds from recent sales (usually settle in 1–3 days)
Reserved cash: Funds set aside for pending buy orders
Pattern day trades: The number of same-day trades you’ve made (out of 3 allowed).
