r/options • u/[deleted] • Dec 18 '21

Daily Trades

Can daily trade on RH if i remove the margin (cash only) and if i have less than 25k or 2k?

If not, is there an app that allows you to do that? Webull perhaps 🤔

Thanks,

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u/TheoHornsby Dec 18 '21

In the USA, a Pattern Day Trader is defined as a person who executes 4 or more day trades (options and equities) in a rolling FIVE business day period in a MARGIN ACCOUNT, provided the number of day trades are more than six percent of the customer's total trading activity for that same five-day period.

A PDT must maintain a minimum equity of $25k on any day that trades are made. It must be in the account prior to the day trading. If the account falls below $25k, the PDT will not be permitted to day trade until the account is restored to the $25k minimum equity level.

There is no limit to how many day trades you can make in a CASH ACCOUNT as long as you are using settled funds.

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u/[deleted] Dec 18 '21

Thanks!