What is a Day Trader?
A day trader is one who buys and sells the same security on the same day to try to take advantage of intraday price movements.
What is a Pattern Day Trader?
A day trader is one who executes four (4) or more day trades in a five (5) business day period.
The minimum equity requirement for a pattern day traders is $25,000; pattern day traders must have on deposit at least $25,000 on any day on which day trading occurs. The minimum maintenance margin requirement for pattern day traders is 25%, the same as for regular customers.
Placing four (4) day trades on a five (5) business day period will restrict your account from placing further day trades for 90 days. This limit applies only to margin accounts, as cash accounts are not suited for pattern day traders.
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