Source: https://mochatrade.com/learn/glossary/day-trading-and-the-pdt-rule

# Day trading and the PDT rule
URL: https://mochatrade.com/learn/glossary/day-trading-and-the-pdt-rule
Last modified: 2026-10-17

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](https://mochatrade.com/learn/us-market-structure/us-stock-market-explained), not on every venue, and the base rate to start from is that [nine in ten Indian F&O traders lost money](https://mochatrade.com/learn/start-here/us-markets-for-indian-traders).

## Related terms

- FINRA: https://mochatrade.com/learn/glossary/finra
- Volatility / VIX: https://mochatrade.com/learn/glossary/volatility-vix
- Bid-ask spread: https://mochatrade.com/learn/glossary/bid-ask-spread
- Market maker: https://mochatrade.com/learn/glossary/market-maker
- Dollar-cost averaging: https://mochatrade.com/learn/glossary/dollar-cost-averaging
- Market capitalization: https://mochatrade.com/learn/glossary/market-capitalization

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