PDT Rule

The Pattern Day Trader (PDT) rule applies to margin accounts in the U.S. and can limit day trades if your equity is below a required threshold.

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.

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.

Last updated 4 days ago