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  1. www.investopedia.com › terms › pPattern Day Trader (PDT): Definition and How It Works

    May 16, 2024 · A pattern day trader (PDT) is a regulatory designation for those traders or investors who execute four or more day trades over the span of five business days using a margin account. The number of ...

  2. www.schwab.com › learn › storyWhat to Know About Day Trading Rules | Charles Schwab

    Jun 25, 2024 · Let's explore how day trading works, what a pattern day trader is, the risks of day trading, and more. What is day trading? Day trading is the purchasing and selling (or short selling and purchasing) of the same security on a single day within a margin account. 1 Day trading applies to virtually all securities—stocks, bonds, ETFs, and even options (calls and puts).

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  4. www.schwab.com › learn › storyThe Pattern Day Trading Rule Explained | Charles Schwab

    Sep 18, 2023 · Under the PDT rule, any margin account that executes four or more day trades in a five-market-day period is flagged as a pattern day trader. Getting flagged isn't necessarily bad; it just puts the account under a little more scrutiny. Once your account is flagged as a pattern day trading account, you're required to maintain a minimum of $25,000 ...

  5. www.thestockdork.com › what-is-the-pattern-dayWhat Is the Pattern Day Trader Rule? A Comprehensive Guide

    Mar 13, 2024 · The Pattern Day Trader (PDT) rule stands as a pivotal regulation, essential for every trader in the stock market. Its implications are vast, affecting factors from the size of the trade to the types of strategies employed. We’ll delve deeply into the rule, uncovering every aspect to offer a thorough understanding.

  6. realtrading.com › trading-blog › pdt-ruleThe Pattern Day Trader (PDT) Rule Explained. How to Avoid It?

    Nov 15, 2021 · This is a day trade since you have ended the day with zero shares of the company. Therefore, if you open similar trades four times in a week from your margin account, the PDT rule kicks in. On the other hand, if you buy and sell shares of a certain company four times on a Monday morning, you are a pattern day trader.

  7. bullishbears.com › pattern-day-traderPattern Day Trader (PDT Rule) Explained - Bullish Bears

    Oct 16, 2024 · A pattern day trader “day-trades four or more times in five business days, and the day-trading activity is greater than six percent of the total trading activity for the same five-day period.”. To avoid PDT designation, you need $25,001 in your trading account. Note that this money must stay in your account for two business days after you ...

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  9. www.warriortrading.com › pattern-day-trader-rulePattern Day Trader Rule (PDT) Explained - Warrior Trading

    Pattern Day Trader (PDT) rule is a designation from the Securities and Exchange Commission (SEC) that is given to traders who make four or more day trades in their margin account over a five business day period. A day trade is when you purchase or short a security and then sell or cover the same security in the same day.