What is pattern day trader (PDT)?Pattern Day Trader

Someone who makes 4 or more day trades within any 5 trading days in a margin account (and those trades are a certain share of all trades in that period). Once flagged, the account needs at least $25,000 in equity to keep day trading.

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US Stock Rules
The PDT Rule: Limits on Day Trades
A margin account that makes 4 or more day trades in any 5 trading days is flagged as a PDT and needs at least $25,000 in account equity to keep going.

Related terms

day trading
margin account
cash account
good-faith violation

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