Day trading and the PDT rule

Day trading is opening and closing a position in the same session. The PDT rule is FINRA's pattern day trader rule: a US margin account under $25,000 that makes four or more day trades in five business days gets restricted. It lives with the brokers' own referee, not on every venue, and the base rate to start from is that nine in ten Indian F&O traders lost money.

Go on

In the help centreSee the order types available on Mochatrade
  • FINRAFINRA is the Financial Industry Regulatory Authority, US brokers policing themselves under the SEC. It writes broker…
  • Volatility / VIXVolatility is how much a price swings. The VIX is Cboe's index of how far the S&P 500 is expected to move over thirty…
  • Bid-ask spreadThe bid-ask spread is the gap between the best price to sell (bid) and the best price to buy (ask). Buy at the ask…
  • Market makerA market maker quotes a price to buy and a slightly higher price to sell all day and earns the spread. Since US prices…
  • Dollar-cost averagingDollar-cost averaging is investing a fixed amount at fixed intervals whatever the price, so you buy more units when…
  • Market capitalizationMarket capitalization is share price times shares outstanding, the market's price for the whole company. Index weights…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

Where it comes up