Just purchasing a security, without selling it later that same day, would not be considered a Day Trade.įINRA provides that a Pattern Day Trader (“PDT”) is any margin account that executes four or more Day Trades within any rolling five business day period. This definition encompasses any security, including options. The Pattern Day Trading rules were enacted by FINRA to require that minimum levels of equity be deposited and maintained in Day Trading accounts.įINRA rules define a Day Trade as the purchase and sale, or the sale and purchase, of the same security on the same day (regular and extended hours) in a margin account.
