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What is a pattern day trader (PDT)?

FINRA and the NYSE define a Pattern Day Trader (PDT) as one who effects four or more day trades (same day opening and closing of a given equity security (“stock”) or equity option) within a five business day period.A day trade is defined as a purchase and sale of a security (US and Non-US) within the same trading day.  The FINRA and NYSE instituted regulations intended to limit the amount of trading that can be done in accounts with small amounts of capital, specifically accounts with less than 25,000 USD Net Liquidation Value.  A Pattern Day Trader is someone who effects 4 or more day trades within a 5 business day period.

Jason Toledo

Jason brings more than 15 years of experience in online trading. Prior to starting ToledoTrade in 2019, Jason held senior and executive level positions at Scottrade, OptionsHouse and Zacks Trade. Jason is passionate about educating self-directed traders and is a leader and expert in the online trading industry.

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