Does the Pattern Day Trading (PDT) Rule apply to options trading?

Yes, the Pattern Day Trading (PDT) rule applies to options trading.

What is the Pattern Day Trader Rule?

TradeZero America, Inc. ("TZA"), like all other registered Broker Dealers in the US, abides by the Pattern Day Trading ("PDT") rule as defined by FINRA Rule 4210 Margin Requirements.

The PDT rule generally states that a customer is limited to three (3) round trip trades in any consecutive five trading day period unless maintaining a daily equity balance of $25,000.

If a customer creates a fourth (4) roundtrip trade, the account is classified as a PDT account. Once classified as a PDT account, the account is restricted from day trading on margin unless the equity balance in the account is $25,000 or more.

In accordance with FINRA guidance and the policies set by TZA's clearing firm, a PDT account can request a PDT reset once in the lifetime of the account. Any subsequent PDT classification will be permanent for the life of the account.

The PDT rule applies to margin accounts that trade stock and options.

Please click here to read FINRA Rule 4210 on Pattern Day Trading (PDT Rule).