Market Structure
What is Pattern Day Trader (PDT) Rule - US?
FINRA's PDT rule requires US margin-account holders who execute 4 or more day trades within 5 business days to maintain at least $25,000 in equity, a uniquely US regulation that constrains small-account active traders.
Formula
Day trade = opening AND closing the same security on the same trading day. 4+ day trades in 5 rolling business days = pattern day trader.
How to Interpret
Falling below $25,000 triggers a 90-day day-trading restriction. Workarounds: (1) keep $25K+ equity, (2) use a cash account (PDT doesn't apply but cash settlement is T+1, so capital cycles slower), (3) trade at offshore brokers, or (4) limit to 3 day trades per 5 days. India has no direct PDT equivalent - Indian intraday trading has different margin and circuit rules instead.
Typical Ranges
N/A, regulatory threshold. Most experienced US day traders maintain $30K+ equity buffer to avoid accidental PDT designation.