US "Pattern Day Trader" rule requiring $25,000 minimum equity for frequent day trading.
Triggered by 4+ day trades in 5 business days in margin account. Below $25K, account restricted to position trading. Many retail traders use cash accounts or international brokers to avoid PDT.
US "Pattern Day Trader" rule requiring $25,000 minimum equity for frequent day trading. Triggered by 4+ day trades in 5 business days in margin account. Below $25K, account restricted to position trading. Many retail traders use cash accounts or international brokers to avoid PDT.
In regulation, PDT Rule is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Triggered by 4+ day trades in 5 business days in margin account. Below $25K, account restricted to position trading.
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