You are considered a Pattern Day Trader (PDT) if you execute 4 or more day trades within 5 consecutive business days in your margin account.
Once the PDT title is triggered, you can day trade as many times as possible as long as your total account equity is $25,000 or above. This only applies margin accounts.
If an account is a PDT and has under $25,000 total account equity, it will be restricted to Liquidation Only until total account equity is increased to $25,000 or above.
If you are tagged as a PDT, you may request to have the PDT status removed as a one-time courtesy. Click here for further instructions.
Total account equity includes all your securities and cash balances, minus any outstanding margin loans.
Day Trading involves significant risk and is not suitable for everyone. Before engaging in day trading, carefully consider your investment objectives, experience level, and risk tolerance.
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