# PDT Rule

### What is a day trade?

* Opening and closing the same security on the same trading day (including many option positions/spreads).
* Example: buy SPY calls and sell them the same day = day trade.

### Key notes

* Cash accounts generally avoid PDT restrictions, but you must wait for settlement to reuse funds and you usually can’t trade spreads.
* Rules and thresholds can change, always confirm the current rule with your broker before active day trading.
* As of January 2026, FINRA has filed a proposal with the SEC to overhaul day-trading margin rules, including removing the $25,000 PDT minimum equity requirement. Until any changes are officially adopted, follow your broker’s current PDT rules.