What is a Pattern Day Trader (PDT)?

A day trade is defined as buying then selling or selling short then buying the same security on the same day. Just purchasing and holding a security overnight, would not be regarded as a day trade. The day-trading margin rule applies to day trading in any security, including options. According to FINRA and NYSE, a pattern day trader(PDT) is someone who effects 4 or more day trades within a 5 business day period. If you are marked as a PDT, you will not be allowed to initiate any new positions unless the equity of your account is above $25,000.

> Note 1: If an liquidation results in the closing of a position that was opened in that same day, it would be counted towards total day trades. This could also result in the account being flagged as a PDT.

> Note 2: Regardless of whether the customer's equity is greater than $25,000 or not, customer executes more than three round trip trades during a rolling five-business day period will be flagged as a PDT.

> Note 3: If a customer has both US margin account and HK margin account of Futu Inc., the two accounts' day trades will be counted towards total day trades.