What happens if I day trade and I am not set up for day-trading?
You are allowed to enter a limited number of day trades in a margin account without being flagged as a pattern day trader. In a margin account, if you exceed 3 day trades in a 5 day rolling period, our clearing firm will flag your account as a pattern day trading account. Once flagged, an email notification will be issued the following morning. Accounts with balances below $25,000 will be restricted to liquidations only till the balance is brought above $25,000.