FINRA's rules limit a pattern day trader to trade up to four times the maintenance margin excess in the account as of the close of business of the previous day.
What happens if you exceed this limit?
If the customer exceeds the limit, our broker partner, DriveWealth, will notify us, and Stake immediately puts them on PDT restriction preventing them from placing any further day trades for 90 days.
Some important points:
Day trade calls and pattern day trade restrictions are different things, however, both are very important when you day trade stocks.
The rules also prohibit the use of cross-guarantees to meet any of the day-trading margin requirements.
PDT is a US regulatory (FINRA) rule, not a Stake rule. Therefore, those marked as Pattern Day Traders could face further restrictions beyond the 90 days, day trade restriction, at the discretion of our US broker-dealer, DriveWealth.
For more information, access the FINRA website or contact us by firstname.lastname@example.org