Are there any day trading restrictions?

Yes. Day trading restrictions apply depending on your account type.

Margin Accounts (PDT Rule):
- Pattern Day Trader rules apply to margin accounts
- Accounts must maintain at least $25,000 in equity to generate day trading buying power
- If Start of Day (SOD) equity is below $25,000, the account will not generate day trading buying power
- PDT designation may be removed once during the lifetime of the account

Cash Accounts:
- Cash accounts are not subject to PDT rules but have different limitations
- You must use settled funds to place trades
- Selling a position before funds are settled may result in a Good Faith Violation
- Short selling is not permitted in cash accounts

Effective June 4, 2026, the current Pattern Day Trader (PDT) rule is expected to be replaced with a new intraday margin framework under updated FINRA Rule 4210. For more information, please click here.