Pattern day trader is a FINRA designation for a customer who executes four or more day trades in five business days in a margin account. A day trade is defined as buying and selling a stock, ETF, or other financial instrument within the same day and closing the position before the end of the trading day.
Regulations mandate that brokers require day traders have $25,000 in their accounts at all times. If the customer's account falls below $25,000, the customer has five business days to replenish the account. If a customer fails to replenish the account, we will be restrict the opening of new positions for 90 days.