Pattern day trading rules apply to margin accounts and are set by FINRA to ensure frequent day traders maintain sufficient account equity.
What is a day trade?
A day trade occurs when you buy and sell (or sell and buy) the same security on the same trading day. This includes stocks, ETFs, and options.
Pattern Day Trader (PDT) designation
You will be flagged as a Pattern Day Trader if you execute four or more day trades in a margin account within five business days.
Once designated as a Pattern Day Trader, you must maintain at least $25,000 in equity in your margin account at all times. If your equity falls below $25,000, you will be restricted from day trading until you deposit additional funds.
Day trade limits for non-PDT accounts
If you have less than $25,000 in your margin account, you are limited to three day trades within a rolling five-business-day period.
Aries Day Trade Counter
Aries shows how many day trades you have remaining. Check your account to view your current day trade count before placing trades.