Pattern Day Trader Reset
IMPORTANT NOTE
Changes to Pattern Day Trading Rules
FINRA has adopted new rules replacing the existing Pattern Day Trading (PDT) requirements with updated Intraday Margin Standards.
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The $25,000 minimum equity requirement for pattern day traders is being removed. Clients will still be subject to the standard Reg T $2,000 minimum for trades using margin or short sales.
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Under the new framework, in certain circumstances trades that reduce your account's excess liquidity may create an Intraday Margin Deficit ("IMD").
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IMDs must be satisfied as promptly as possible and ideally within 3 business days.
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Failing to satisfy an IMD on 4 or more occasions within a 12-month period may result in a 90-day trading restriction across all your associated margin accounts.
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Your account may still be subject to existing PDT rules during FINRA's transition period, which ends in October 2027.
Additional information is available in our FAQs.
Instructions
A day trade is defined as a purchase and sale of a security (US and Non-US) within the same trading day. The FINRA regulations intended to limit the amount of trading that can be done in accounts with small amounts of capital, specifically accounts with less than 25,000 USD Net Liquidation Value. A Pattern Day Trader is someone who effects 4 or more day trades within a 5 business day period.
If your account has been designated as a Pattern Day Trader and you are eligible for a reset, you will be provided with a link to the PDT reset tool if you attempt to enter an order via TWS.
You may request a reset by following the below procedure:
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Click the Compose button and select Pattern Day Trader Request.
If your account is eligible for a reset, you will be directed through a series of steps to obtain a reset.
Note: The Pattern Day Trader reset request can be submitted via Portal (as described above), but not via Mobile or TWS.