Pattern Day Trader (PDT) Rule Explained

For many years, the PDT rule was a major headache for day traders in the United States. The Pattern Day Trader (PDT) regulatory framework is applied to certain brokerage accounts, and the rule was introduced in 2001. A day trader is a market participant who opens and closes positions within a single trading day. In this context, an intraday trade means buying and selling the same asset within a single trading session.Once a broker designated an account as a PDT account, a minimum equity requirem