What is the PDT rule?
The PDT (Pattern Day Trader) rule is a US regulation requiring traders who execute 4+ day trades within 5 business days to maintain a minimum account equity of $25,000. Below this threshold, accounts flagged as PDT face restrictions including a 90-day day-trade lockout if rules are violated.
More detail
The PDT rule applies only to margin accounts trading US equities — cash accounts and some non-US brokers operate differently.
Common workaround: split capital across multiple brokers to get more day-trade allowance, or use a cash account with longer settlement.
PDT applies to round-trip trades — buying and selling (or selling short and covering) the same security on the same day.