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Pattern Day Trader Rules Video



Key Takeaways

  • Margin accounts are flagged as PDT when performing more than 3 day trades in a rolling 5-business day period.
  • Traders are allowed one PDT reset per 90 calendar days.
  • Margin accounts that are flagged as PDT and drop below $25,000 at the end of a trading day will receive an Equity Maintenance (EM) call the next trading day.
  • Margin accounts must end the day at $25,000 or above to meet an EM Call
  • PDT Rules do not apply to futures trading.
  • Margin accounts that are eligible to maintain a PDT status can receive an EM call from a futures position held overnight if it causes your securities account balance to fall under $25,000.
  • PDT reset requests must be submitted by 3:00 pm Central (Chicago Time)
 


What is an Equity Maintenance (EM) Call?

Issued when an account does not have enough money to maintain a PDT status

A Pattern Day Trader (PDT) Equity Maintenance (EM) call is issued when a margin account falls below $25,000 at the close of business the previous day. As a result of the call, the account is set to closing-only. Additionally, a margin account is flagged as a PDT if it makes more than 3 day trades in a rolling 5 trading-day period, whether intentional or not. Maintaining a PDT status requires a securities account to maintain a balance of $25,000 or higher.


How to Meet an EM Call

Make a Deposit or Request a Reset (if eligible)

A margin account must close above $25,000 or higher to meet an EM call. Any fluctuations above $25,000 intraday will not meet the call. However, if you cannot meet the call by depositing funds, then you may request a reset to remove a PDT status. Accounts may request a PDT reset once every 90 calendar days.

PDT reset requests must be sent to tastyworks by 3 pm Central (Chicago time). Requesting a reset to remove PDT status will take effect the next trading day. You may request a reset by reaching out to our trade desk at tradedesk@tastyworks.com, chat, or over the phone. After a reset is processed, your day trade counter will not reset back to 0 (zero). The day trade counter resets on a rolling 5-business day basis so you will need to keep track of your day trades after a reset request.

To read more about this regulatory rule, please click here.



Holding Futures Overnight

Accounts above $25,000 can receive an EM call when holding Futures overnight

Accounts eligible to maintain a PDT status are subject to an EM call when a futures position is held overnight, which can cause your securities account to fall below $25,000. Futures held overnight will result in the overnight requirement sweeping from your securities account (stock and options) to your futures account. To learn more about the separation of securities and future account, then please click here.