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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?

A Pattern Day Trader (PDT) Equity Maintenance (EM) call is issued when a PDT's account falls below $25,000 at the close of business the previous day, and as a result, 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. 


How to Meet an EM Call

To meet an EM call, the a margin account must close above $25,000. Or, if you cannot meet the call by depositing funds then you may request a reset to remove a PDT status, which can be done once every 90 calendar days. Any fluctuations above $25,000 intraday will not meet the call.

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. Resets can be done 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 that are eligible to maintain a PDT status are subject to EM calls if a futures position is held overnight causing your securities account balance to fall beneath $25,000. This is due to the overnight margin requirement that is swept to maintain the futures position 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.