A pattern day trader is a trader who makes four or more qualifying day trades in a five-day period. To qualify as a pattern day trader, the individual must meet two additional criteria. The person ...

Pattern day traders must maintain a $25,000 minimum balance to trade. Accounts are flagged for pattern trading with 4 same-day trades in 5 days. Exceeding day trade limits triggers a margin call, ...

Violating the pattern day trading rule can be a costly mistake for active investors. For the uninitiated, it can result in trading restrictions or a locked account. And when that happens, any holdings ...