Margin accounts are flagged as PDT when performing more than 3 day trades in a rolling 5-business day period. Accounts under $25,000 in equity will be set to closing-only transactions until a PDT reset is used and or the account closes above $25,000 in equity. Please note that any margin held in futures and or crypto positions will not count towards an account's equity.
- Pattern Day Trader Rules Video
- Key Takeaways
- What is an Equity Maintenance (EM) Call?
- How to Meet an EM Call
- How do I submit a PDT Reset?
- Holding Futures or Cryptocurrencies Overnight
Pattern Day Trader Rules Video
- Margin accounts are flagged as PDT when performing more than 3 day trades in a rolling 5-business day period across all related margin accounts. Find more information on related margin accounts here.
- Day trade count is cumulative across all related margin accounts.
- Traders are allowed one PDT reset per primary account for the life of the account.
- Margin accounts that are flagged as PDT and drop below $25,000 at the end of a trading day will receive an Equity Maintenance (EM) call the next trading day.
- The primary margin account must end the day at $25,000 or above to meet an EM Call
- PDT Rules do not apply to futures trading.
- Margin accounts that are eligible to maintain a PDT status can receive an EM call from a futures position held overnight if it causes your securities account balance to fall under $25,000.
- PDT reset requests must be submitted by 3:00 pm Central (Chicago Time)
What is an Equity Maintenance (EM) Call?
Issued when an account does not have enough money to maintain a PDT status
Multiple Margin Accounts Day Trade Counting
|Margin Accounts||Day Trade Count||Day Trade Count Total|
Primary (Identifier) Account
Multiple Margin Account Equity Balance Tracking
When holding multiple margin accounts, account equity requirements for PDT are determined on the aggregate balances of all related sub-margin accounts. In the example below, three related margin accounts all hold $10,000 in equity (cash and equity positions). If flagged as a pattern day trader, each sub-account will not be set to closing-only, as the aggregate account equity across all related sub-accounts is greater than $25,000.
|Margin Accounts||Closing Account Equity Balance||Total Account Equity|
Primary (Identifier) Account
Please note that any cash held up in open futures or crypto positions will not count towards an account's aggreagte account equity. To closely estimate your aggregate account equity, sum all related margin account's net liquidating value. Then subtract that aggregate net liquidating value by any cash held up in crypto and futures positions to get your estimated account equity balanace.
How to Meet an EM Call
Make a Deposit or Submit a Reset (if eligible)
A primary margin account equity balance must close above $25,000 or higher to meet an EM call. Any fluctuations above $25,000 intraday will not meet the call. However, if you cannot meet the call by depositing funds, then you may request a reset to remove a PDT status. Submitting a PDT reset
How do I submit a PDT Reset?
To submit a PDT reset, log in to your account at manage.tastytrade.com. After signing in, navigate to MY ACCOUNTS>TRADING PREFERENCES or click here. Once inside Trading Preferences, select the account you wish to reset by clicking MORE () if you have multiple accounts. Scroll down to the Reset Pattern Day Trader (PDT) Status section. If your margin account is eligible for a reset then click the green RESET PDT STATUS button, as illustrated below.
Please keep in mind that any day trades made on the same day that a PDT status reset request is processed will not be removed via the reset and could result in immediate re-classification as a pattern day traden. PDT resets submitted before 3:15 PM CT will be processed overnight. PDT reset requests submitted after 3:15 PM CT will be processed the following night.
Account is not eligible for a PDT reset
Account is not classified as a Pattern Day Trader
Lastly, if your margin account is not classified as a pattern day trader, then you will see NOT CLASSIFIED PDT because there is nothing to reset.
Holding Futures or Cryptocurrencies Overnight
Accounts above $25,000 can receive an EM call when holding Futures or Digital Currencies overnight
Accounts eligible to maintain a PDT status are subject to an EM call when a futures position or cryptocurrency is held overnight, which can cause your securities account to fall below $25,000. Futures held overnight will result in the overnight requirement sweeping from your securities account (stock and options) to your futures account. When trading and holding digital currency positions over multiple days, the purchase value of the digital currency position purchase will sweep from your securities account to your cryptocurrency account. To learn more about the separation of your securities account from your futures or cryptocurrency account, then please click here.