Trading the US market
Pattern day trader (PDT) rule
Definition
The PDT rule was a FINRA margin rule: four or more day trades within five business days in a margin account required at least $25,000 in account equity. Amendments that took effect on June 4, 2026 replace the day-trade count and the $25,000 minimum with intraday margin requirements. Brokers have until October 20, 2027 to make the switch and may keep stricter rules of their own, so check your broker's current policy.
Example
Under the original rule, say you had $18,000 in a margin account and made one day trade each on Monday, Tuesday, Wednesday and Thursday of the same week. That was four day trades within five business days, so the account was flagged as a pattern day trader and could not day trade until its equity reached $25,000. A broker that has not yet switched to the new intraday margin requirements may still apply this count.
Hypothetical numbers, for illustration only.
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