A day trading pattern (PDT) occurs when an investor carries out 4 or more day trades in a period of five working days, as defined by FINRA (Financial Industry Regulation Authority), the American regulatory body, similar to ANBIMA in Brazil. Traders who exhibit this pattern of day trading are subject to PDT restrictions and may have their accounts blocked for a period of 90 days, during which time no new positions can be purchased.
Investors with more than $25,000 in their Investment Account will be exempt from this rule.
*Day trading is a trading strategy in which you buy and sell (or sell and buy) the same asset on the same day.