y. Pattern Day Trading Rules (US Options & Futures)

Pattern Day Trading Rules (PDT)

Margin accounts are flagged as PDT when performing more than 3 day trades in a rolling 5-business day period. Accounts under $25,000 in equity will be set to closing-only* transactions until a PDT reset is used and or the account closes above $25,000 in equity. Please note that any margin held in futures positions will not count towards an account's equity.

*Closing only means you may maintain existing positions but cannot open new positions/trades.

What is an equity maintenance (EM) call?

Issued when an account does not have enough money to maintain a PDT status

A Pattern Day Trader (PDT) Equity Maintenance (EM) call is issued when the aggregate related margin account equity balance falls below $25,000 at the close of business the previous day. As a result of the call, all margin accounts are set to closing-only.

Additionally, a margin account is flagged as a PDT if it makes more than 3 day trades in a rolling 5 trading-day period, whether intentional or not. Maintaining a PDT status requires a securities account to maintain a balance of $25,000 or higher.

Multiple Margin Accounts Day Trade Counting

A day trade occurs when an equity or US equity options position is opened and closed on the same day. When holding multiple related margin accounts, if a day trade occurs in any sub-account, it will add to your aggregate day trade counter. For more information on how day trades are counted, please click here. In the example below, two related margin accounts have made 2-day trades in the past 5 business days. When either sub-account triggers the 4th aggregate day trade, a PDT EM call will be issued, and any ramifications apply to all sub-accounts.

Multiple margin account equity balance tracking

When holding multiple margin accounts, account equity requirements for PDT are determined on the aggregate balances of all related sub-margin accounts. In the example below, three related margin accounts all hold $10,000 in equity (cash and equity positions). If flagged as a pattern day trader, each sub-account will not be set to closing-only, as the aggregate account equity across all related sub-accounts is greater than $25,000.

Please note that any cash held up in open futures positions will not count towards an account's aggregate account equity. To closely estimate your aggregate account equity, sum all related margin account's net liquidating value. Then subtract that aggregate net liquidating value by any equity held up in futures positions to get your estimated account equity balance.

How to meet an EM call

Make a deposit or submit a reset (if eligible)

A primary margin account equity balance must close above $25,000 or higher to meet an EM call. Any fluctuations above $25,000 intraday will not meet the call. However, if you cannot meet the call by depositing funds, then you may request a reset to remove a PDT status.

How do I submit a PDT reset?

To submit a PDT reset, log in to your account at my.tastytrade.com. After signing in, navigate to MANAGE > My Accounts > Risk Monitoring. Once inside the Risk Monitoring section, select the account you wish to reset by clicking under Current Account if you have multiple accounts. Scroll down to the Reset Pattern Day Trader (PDT) Status section. If your margin account is eligible for a reset then click the green RESET PDT STATUS button.

Please bear in mind that any day trades made on the same day that a PDT status reset request is processed will not be removed via the reset and could result in immediate reclassification as a pattern day trader. PDT resets submitted before 2:15 PM Chicago Time will be processed overnight. PDT reset requests submitted after 2:15 PM Chicago Time will be processed the following night.

Account is not eligible for PDT Reset

However, if you have already used your one-time reset, your margin account is not eligible for another PDT reset then the button will show as UNAVAILABLE

Account is not classified as Pattern Day Trader

Lastly, if your margin account is not classified as a pattern day trader, then you will see NOT CLASSIFIED PDT because there is nothing to reset.

Holding Futures Overnight

Accounts above $25,000 can receive an EM call if holding futures positions overnight.

Accounts eligible to maintain a PDT status are subject to an EM call when a futures position is held overnight, which can cause your securities account to fall below $25,000. Futures held overnight will result in the overnight requirement sweeping from your securities account (stock and US options) to your futures account.

Key Points

Margin accounts are flagged as PDT when performing more than 3 day trades in a rolling 5-business day period across all related margin accounts. Find more information on related margin accounts here.
Day trade count is cumulative across all related margin accounts.
Traders are allowed one PDT reset per primary account for the life of the account.
Margin accounts that are flagged as PDT and drop below $25,000 at the end of a trading day will receive an Equity Maintenance (EM) call the next trading day.
The primary margin account must end the day at $25,000 or above to meet an EM Call
PDT Rules do not apply to futures trading.
Margin accounts that are eligible to maintain a PDT status can receive an EM call from a futures position held overnight if it causes your securities account balance to fall under $25,000.
PDT reset requests must be submitted by 2:15 pm CST (Chicago Time)