What is the Pattern Day Trader (PDT) Rule?

The PDT Rule applies to margin accounts that trade stocks or options.

You are classified as a PDT if:
- You execute 4 or more day trades within 5 business days

What is a day trade?
- A day trade occurs when you buy and sell or short and cover the same security on the same day

Important:
- You do not need to fully close the position for it to count as a day trade
- The number of shares does not matter
- Applies to both long and short positions

PDT Requirements:
- You must maintain at least $25,000 in equity to generate day trading buying power
- If your Start of Day (SOD) account value is below $25,000, it will not generate day trading buying power

Additional Information:
- A one-time PDT reset may be available
- PDT rules apply only to margin 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.