A pattern day trader is defined in Exchange Rule 431 (Margin Requirement) as any customer who executes 4 or more round-trip day trades within any 5 successive business days. If, however, the number of day-trades is less than or equal to 6% of the total number of trades that trader has made for that five business day period, the trader will not be considered a pattern day trader and they will not be required to meet the criteria for a pattern day trader.
If the brokerage firm knows, or reasonably believes a client who seeks to open or resume an account will engage in pattern day trading, then the customer must immediately be considered a pattern day trader without waiting 5 business days.
Source: Information Memo of Amendments to Rule 431 ("Margin Requirements") Regarding "Day Trading"
... While all investments have some inherent level of risk, day trading is considered by the SEC to have significantly high risk ... amendments to address the intraday risks associated with day trading in customer accounts ... be deposited and maintained in customer accounts that engage in a pattern of day trading in amounts sufficient to support the risks associated with such ...
... February 24 is the 55th day of the year in the Gregorian calendar ... There are 310 days remaining until the end of the year (311 in leap years) ... By Roman custom, February 24 is the day added to a leap year in the Julian calendar ...
... To distinguish between a full day and daytime, the word nychthemeron (from Greek for a night and a day) may be used in English for the former, or more colloquially the ... Other languages also have a separate word for a full day, such as vuorokausi in Finnish, ööpäev in Estonian, dygn in Swedish, døgn in Danish, døgn in ... In Italian, giorno is used to indicate a full day, while dì means daytime ...
... Christian Feast Day Engelbert II of Berg Herculanus of Perugia Prosdocimus Vicente Liem de la Paz Willibrord November 7 (Eastern Orthodox liturgics ... (Tunisia) National Day, after Treaty of Pyrenees ... Northern Catalonia) National Revolution and Solidarity Day (Bangladesh) October Revolution Day (the Soviet Union (former, official), modern Russia (unofficial ...
... and SEC further restrict the entry by means of "pattern day trader" amendments ... Pattern day trader is a term defined by the SEC to describe any trader who buys and sells a particular security in the same trading day (day trades), and does this four or more ... A pattern day trader is subject to special rules, the main rule being that in order to engage in pattern day trading the trader must maintain an equity balance of at least $25,000 ...
Famous quotes containing the words pattern and/or day:
“Put out the light, and then put out the light.
If I quench thee, thou flaming minister,
I can again thy former light restore
Should I repent me; but once put out thy light,
Thou cunningst pattern of excelling nature,
I know not where is that Promethean heat
That can thy light relume.”
—William Shakespeare (15641616)
“Let us have wine and women, mirth and laughter,
Sermons and soda-water the day after.”
—George Gordon Noel Byron (17881824)