I understand the PDT except one part. If your account goes over 25k and you make 5 or 6 trades that day, then the following day your account dips below 25k will you immediately be put on a 90 day hold for breaking the PDT? Or do the 5 or 6 trades you made while you're over 25k not count towards the 3 day trades?
Not sure if anyone here has even experienced this, but figured I'd ask here. I'll probably call my broker later to verify.
Thanks, that was my guess. So, if/when I cross that 25k mark I'll still need to just make 3 day trades per 5 days until I'm confident I won't ever dip below 25k again. Thanks for the link.
If after your 5 or 6 trades you total account equity is still 25k or over then no PDT restriction. By account equity I mean the total $$ of securities you are playing with (gain or loss) plus the remaining $$ in your account. However, if you sell all your positions and you end up below 25k after realized losses then you fall back into PDT restriction.
@RBI yes....brokers have different rules when you are flagged as a PDT. If you fall back under 25K and are a PDT some brokers will make you wait 90 or 120 days before resetting back to a non-PDT or you can ask 'once' to be reset back to non-PDT or simply deposit
the difference into your account to bring you back above 25K cash. Call your broker to ask what their rules are. They can differ broker to broker...
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