PDT rule

Discussion in 'Trading' started by zg81, Mar 31, 2010.

  1. zg81


    I have a question regarding the PDT rule:

    Say yesterday I had over $25000 in my account and I did more than 5 round trip trades and the balance remained over $25000 throughout the day. And today I didn't make a single trade but withdrew some money and balance fell below $25000.

    Did I violate the PDT rule?
  2. schizo


    It's been awhile since I last traded stocks but, according to the definition given in the Wiki link above, you are technically in violation of the PDT rule.

    1) You were flagged as a pattern day trader because you executed 4 or more round-trips within the 5 successive business days.

    2) Now that you are designated as PDT, you must maintain an equity balance of at least $25,000 in a margin account at all times, which you failed to do by having withdrawn the fund.