What is the PDT (Pattern Day Trader) rule?

Asked 5 years ago

Also, is the PDT rule applied to all account types or only specific types. How does it work exactly?

Osasere Okunloye

Monday, August 09, 2021

The pattern day-trading rule states that a pattern day trader must maintain a minimum equity of $25,000 on any day that the customer day trades. This 25k must be in the trader's account before the day trading activities. The Pattern Day Trader rule applies to all margin accounts with any broker under the Financial Industry Regulatory Authority (FINRA).