Pattern day trader rules

FINRA defines a pattern day trader (PDT) as anyone who executes four or more day trades within any five-business-day rolling window in a margin account, where those trades represent more than 6% of total trades.

PDT accounts must maintain a minimum equity of $25,000. If your account falls below this threshold, you won't be able to day trade until it's restored.

One workaround: trade in a cash account, where settled funds can be used for trades without PDT restrictions — but you must wait for trades to settle (typically T+1 for equities) before reusing proceeds.