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How do you count the day trades?
A day trade is defined as the opening and closing of the same position in a security within the same trading day. This applies to U.S. and non-U.S. securities, including:
- Stocks
- Stock and Index Options
- Warrants
- T-Bills and Bonds
- Single Stock Futures
You are classified as a Pattern Day Trader (PDT) if you execute 4 or more day trades within 5 business days, and those trades represent more than 6% of your total trading activity during that period.
Once flagged as a PDT, your account must maintain a minimum equity of $25,000 to continue day trading without restriction.
