What is a pattern day trader?

You’ll be considered a pattern day trader if you make 4 or more day trades within 5 trading days, and the number of day trades represents more than 6% of your total trades within your margin brokerage account for that same 5 trading day period.

How many days can a day trader Trade in 5 days?

Unfortunately, the PDT rule doesn’t allow for more than 3, day trades in five days for trading accounts under $25,000. Under the said rule, a day trader must maintain minimum equity of $25,000 if day trading four or more times within five business days (5-day rolling period) with a margin account.

Are options day trades?

Individual options contracts aren't necessarily considered day trades if they're part of a spread or larger order. Know the rules your particular brokerage has with respect to options day trades as they vary from firm to firm. Remember that the five-day rolling window counts business days, not calendar days.

Who are self-identified day traders & pattern day trading violators?

Self-identified day traders: This includes folks who are actually day traders, meaning their brokerage is aware that they intend to day trade and that they meet the $25,000 minimum account value requirement. Pattern day trading violators: These are people who day traded in violation of the rules without meeting the sufficient capital requirement.