Risk and account rules
Pattern Day Trader (PDT) Rule
Updated May 28, 2026 · Published May 17, 2026
US FINRA pattern day trader rule summary for margin accounts.
The US pattern day trader (PDT) rule applies to margin accounts at FINRA-member brokers. If you day trade too often relative to your activity, you may be labeled a PDT and need $25,000 minimum equity to day trade without restrictions.
Options legs count when they are opened and closed the same day. Know your broker’s counting before you scalp weeklies.
What counts as a day trade?
Generally: buy and sell (or sell and buy) the same security on the same trading day in a margin account.
For options, each contract series is its own security. Stock and its options are separate.
Pattern day trader label
You may be flagged PDT if within five business days you make four or more day trades and those day trades are more than 6% of your total trades in that period.
Brokers enforce with platform flags and buying power restrictions.
$25,000 equity requirement
Once labeled PDT, you typically must maintain $25,000 in the margin account to day trade freely. Below that, you may be restricted to closing-only or cash-up-front rules until you deposit or wait.
Cash accounts follow different settlement rules (good faith violations, frozen funds), not a free PDT bypass for everyone.
Options examples (educational)
| Action same day | Often counts? |
|---|---|
| Buy call, sell same call | Yes |
| Open bull call spread, close entire spread | Often one day trade per broker logic |
| Exercise and sell stock | Different rules; not simple scalp |
Broker algorithms vary. Read your firm’s PDT FAQ.
Why it exists
Regulators treat frequent day trading as higher risk for undercapitalized accounts. Leverage plus turnover magnifies mistakes.
Practical responses
- Swing trade: hold overnight to avoid day trade count
- Smaller frequency: plan entries; fewer round trips
- Capital: meet minimum if day trading is core strategy
- Cash account: understand T+1 settlement and GFV limits instead
International brokers outside US rules differ.
Interaction with margin
PDT sits on top of margin account rules. Short options plus day trading consumes buying power faster.
Worked example: four day trades in five days
Monday: buy call, sell call same day (1).
Tuesday: buy put, sell put same day (2).
Wednesday: open spread, close spread same day (3).
Thursday: scalp stock round trip (4).
You may hit the pattern threshold if total activity is low and these four are a large share of trades. A fifth same-day round trip in that window can trigger the label at many brokers.
Worked example: swing trade avoids count
Monday: buy call.
Wednesday: sell call.
Different calendar days → not a day trade under the usual definition. You held overnight theta risk, which is a tradeoff, not a loophole cheat.
Equity below $25k after PDT flag
Some accounts get 90-day restriction or must deposit to restore day trading. Plan capital before you build a scalping habit on a $5,000 account.
Options on different expirations
Buying a March call and selling a March call same day counts on that series. Buying March and selling April is two different series; broker logic for spreads may still count one day trade when closing a packaged spread. Verify with your firm.
International and retirement accounts
IRA accounts often restrict short options and margin, which changes PDT relevance but not all risk. Non-US residents using US brokers should read local and broker rules.
PDT reset and appeals
Some brokers allow one-time PDT flag removal or education if you accidentally day traded. Policies vary. Do not rely on appeals; plan trade count.
Cash account settlement (T+1 context)
US stock settlement moved toward shorter cycles. Cash account traders still need to track settled funds before redeploying. Good faith violations can freeze buying for 90 days at some firms.
Options day trades count
Closing a long call opened this morning is a day trade on that option series. Spreads closed as one ticket may count once; verify broker FAQ.
Planning weekly trade budget
If you are under $25k and want to day trade occasionally, budget how many round trips you can afford in the rolling window without triggering PDT.
Related guides
ThetaViz provides educational tools only. This guide is not investment, tax, or legal advice. Prices, margin requirements, and tax rules change. Confirm details with your broker and qualified professionals before trading.