The pattern day trader rule and the $25,000 minimum
Know when FINRA classifies you as a pattern day trader, and what that means for your account.
Module 20 of 26, US tax walkthroughs (general information). Lesson 5 of 5, about 14 minutes. This module is for readers in the US.
The takeaway
A margin account that racks up 4 day trades in 5 business days gets flagged and needs $25,000 in equity to keep day trading. A cash account avoids the rule but is limited to settled funds.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.