Pattern day trading rules were put in place by FINRA, one of our regulators. We’ve gone a step further and provided you with tools you can use to make sure you’re investing responsibly.

    Before you begin

    Pattern Day Trading restrictions don’t apply to cash accounts. They only apply to margin accounts, like Robinhood Instant accounts and accounts that have margin investing enabled. This means you can trade stocks, ETPs, and options without worrying about your number of day trades.

    You can switch to a cash account from both a margin investing enabled account or a limited margin account (Robinhood Instant). Keep in mind that if your account is margin investing enabled you will not be able to switch to Cash account if you have a margin balance. In the app, navigate to the Account tab Menu Investing Day trade settings Switch to cash account .

    On the web, navigate to the Account tab Settings Investing Account type Switch to cash account .

    Defining a day trade

    Defining a day trade

    When you buy and sell (or sell and buy) the same stock or ETP within a single trading day, you’ve made a day trade. When you open and close the same options contract(s) within a single trading day, you’ve made a day trade.

    Understanding the rule

    Understanding the rule

    You’ll be considered a pattern day trader if you execute 4 or more day trades within 5 trading days, provided that the number of day trades represents more than 6% of your total trades within your margin brokerage account for that same 5 trading day period.

    You’re generally limited to no more than 3 day trades in a 5 trading day period, unless you have at least $25,000 of portfolio value (excluding any cryptocurrency positions) in your margin brokerage account at the end of the previous day. This sounds tricky, but it just means that within any 5 trading day period, once you place your fourth day trade, you will be flagged as a pattern day trader and you’ll need to have a portfolio value (excluding any cryptocurrency positions) greater than $25,000 at the end of the trading day to be able to continue day trading the next day. Your portfolio value is the sum of your cash + stocks + options and, for the purposes of pattern day trading calculations, doesn't include cryptocurrency positions.

    Your portfolio value may fluctuate above $25,000 at some point during the trading day, but we only take into account the closing balance of the previous trading day. Remember that this value doesn’t include any cryptocurrency positions –only the cash, options, and stocks in your brokerage account. To verify whether you are restricted from day trading or not on any given day, you can visit the Account ---> Investing —> Day Trades section of your app. Keep in mind this value doesn’t include your margin buying power or cryptocurrency–only the cash, ETPs, options, and stocks in your brokerage account.

    In addition, the 5 trading day window doesn’t necessarily align with the calendar week. For example, Wednesday through Tuesday could be a 5 trading day period. If you place your fourth day trade in the 5 trading day window, your brokerage account will be marked for pattern day trading for 90 calendar days. This means you won’t be able to place any day trades for 90 days unless you bring your portfolio value (excluding any cryptocurrency positions) above $25,000. If you are flagged as a pattern day trader and you do not have $25,000 at the end of the trading day, you will be issued an Equity Maintenance call and be restricted from day trading for 90 calendar days or until you end the trading day with a portfolio value of $25,000.

    Note

    Because the $25,000 portfolio value requirement is set by FINRA, all brokerages are required to enforce it. If you’d like more information, you can learn more about day trading rules on FINRA’s website .

    Order versus execution

    Order versus execution

    When you place an order, it won’t actually count as a day trade unless it executes. However, you’ll notice that an open order that you’ve placed but hasn’t been executed will appear as a day trade in your Day Trade Counter. We designed this feature to let you know that if your order executes, you’ll have made another day trade.

    Multiple executions

    Multiple executions

    Orders usually receive a fill at once, but occasionally you might encounter multiple or partial executions. This sometimes happens with large orders, or with orders on low-volume stocks. For regulatory purposes, each execution counts towards your day trade count, so trading low-volume stocks or placing especially large orders may increase your chances of executing a day trade.

    Example

    An order to buy 10,000 shares of XYZ may be split into separate orders:

    Buy 1,000 shares

    Buy 2,000 shares

    Buy 3,000 shares

    Buy 1,500 shares

    Buy 2,500 shares

    Placing a sell order before your buy order has been completely filled puts you at risk of executing multiple trades that would pair with each sell order, resulting in multiple day trades.

    If you place a sell order before all 10,000 shares are purchased, every sell order (up to five) that you place on this stock on this day would count as a separate day trade.

    Note

    Cash Management is no longer accepting new customers at this time. Existing users from Cash Management can sign up for the waitlist to apply for a migration to the Robinhood Money spending account.

    Pattern day trading + Cash Management

    Pattern day trading + Cash Management

    If you've already been marked as a pattern day trader (PDT) before signing up for Cash Management, you can still sign up and use the debit card, but you will not be eligible for the deposit sweep program. If you're marked PDT while enrolled in Cash Management, you'll be unenrolled from the deposit sweep program and will have your cash swept back from program banks. Any already-accrued interest will be paid to your brokerage account, but you will not accrue any additional interest until you are unmarked PDT.

    The reason we disable participation in the deposit sweep program when you're marked PDT is that cash at program banks doesn't count toward the $25,000 minimum needed to continue day trading. Swept cash also does not count toward your day trade buying limit. Enabling pattern day traders to participate in the deposit sweep program would result in a number of potential day trade calls for those customers, so the industry standard is to disable deposit sweep programs for PDTs. See FINRA Rule 4210(f)(8)(B) for more details on the definition of and requirements applicable to PDTs.

    Day trade counter

    Day trade counter

    You can see how many day trades you’ve made in the current five-trading-day period:

    1. Tap the account icon in the bottom right corner of your app
    2. Tap Investing
    3. Scroll down to Day trades made

    One time pattern day trading flag removal

    One time pattern day trading flag removal

    If you are currently flagged as a pattern day trader, you may be eligible for a one time removal of your pattern day trading flag and/or associated restrictions. View your options here .

    Examples

    Examples

    Understanding day trading can be really complicated, so here are some examples of what is and what isn’t a day trade:

    One day trade

    One day trade

    You start with 0 shares of ABC stock.

    Buy 1 ABC

    Sell 1 ABC

    This is one day trade because you bought and sold ABC in the same trading day.  

    Day Trade: (Buy 1 ABC, Sell 1 ABC).

    You start with 10 shares of ABC stock.

    Sell 10 ABC

    Buy 5 ABC

    Sell 5 ABC

    This is one day trade.

    Since your first transaction for ABC was selling ABC that you already owned from a previous day, it doesn’t count toward your day trades.

    Day Trade: (Buy 5 ABC, Sell 5 ABC).

    You start with 10 shares of ABC stock.

    Buy 1 ABC

    Sell 10 ABC

    This is one day trade. Though you already own 10 shares of ABC, you opened a new position in ABC with the initial purchase.

    Day Trade: (Buy 1 ABC, Sell 10 ABC).

    You start with 0 shares of ABC stock.

    Buy 1 ABC

    Buy 2 ABC

    Buy 7 ABC

    Sell 1 ABC

    Sell 5 ABC

    Sell 4 ABC

    This is one day trade because there is only one change in direction between buys and sells. 

    Day Trade: (Buy 1 ABC, Buy 2 ABC, Buy 7 ABC, Sell 1 ABC)

    One day trade (options examples)

    One day trade (options examples)

    You start with 0 ABC call contracts

    Buy-to-open 1 ABC Call Sell-to-close 1 ABC Call

    This is one day trade because you opened and closed ABC calls in the same trading day.

    You start with 0 ABC put contracts Sell-to-open 1 ABC Put Buy-to-close 1 ABC Put

    This is one day trade because you opened and closed ABC puts in the same trading day.

    You start with 0 ABC call contracts

    Buy-to-open 1 ABC Call Buy-to-open 3 ABC Call Buy-to-open 2 ABC Call Sell-to-close 6 ABC Call

    This is one day trade.

    Purchase stocks → put option exercise

    You start the day with 1 long ABC Put

    You buy 100 shares of ABC You exercise the 1 ABC Put, selling 100 shares

    This is one day trade because you opened and closed the ABC stock position that day.

    You start the day with 1 long ABC Call and 0 shares ABC

    You exercise the 1 ABC Call, buying 100 shares You then sell 100 shares of ABC

    This is one day trade because you opened and closed the ABC stock position on the same day.

    Two day trades

    Two day trades

    You start with 0 shares of ABC stock.

    Buy 50 ABC

    Sell 15 ABC

    Sell 35 ABC

    Buy 10 ABC

    Sell 10 ABC

    This is two day trades because there are two changes in directions from buys to sells.

    Day Trade 1: (Buy 50 ABC, Sell 15 ABC, Sell 35 ABC).

    Day Trade 2: (Buy 10 ABC, Sell 10 ABC).

    Disclosures

    Disclosures

    All investments involve risks, including the loss of principal. Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation. For more information please see Robinhood Financial’s Margin Disclosure Statement , Margin Agreement and FINRA Investor Information . These disclosures contain information on Robinhood Financial’s lending policies, interest charges, and the risks associated with margin accounts.

    Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Robinhood Financial does not guarantee favorable investment outcomes and there is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing. To learn more about the risks associated with options, please read the C haracteristics and Risks of Standardized Options  before you begin trading options. Supporting documentation for any claims, if applicable, will be furnished upon request.

    Please also be aware of the risks listed in the following document: Day Trading Risk Disclosure Statement .

    Cash Management is an added feature to your Robinhood Financial LLC brokerage account. The Annual Percentage Yield (APY) paid by program banks might change at any time at the program banks’ discretion. Interest is earned on uninvested cash swept from the brokerage account to the program banks. Neither Robinhood Financial LLC nor any of its affiliates are banks. Securities trading is offered through Robinhood Financial LLC, member SIPC and FINRA. Cryptocurrency trading is offered through Robinhood Crypto, LLC. Robinhood Financial LLC and Robinhood Crypto, LLC are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).

    The Robinhood Money spending account is offered through Robinhood Money, LLC ("RHY") (NMLS ID: 1990968), a licensed money transmitter.

    Securities trading is offered through Robinhood Financial LLC, member SIPC and FINRA. Cryptocurrency trading is offered through Robinhood Crypto, LLC. Robinhood Crypto is not a member of SIPC or FINRA. Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by either FDIC or SIPC. Robinhood Financial LLC and Robinhood Crypto, LLC are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).

    Reference No. 20210809-1751663-5280702-2018881

    Can I still trade with a 90 day restriction Robinhood?
    If you place your fourth day trade in the 5 day window, your brokerage account will be marked for pattern day trading for 90 calendar days. This means you won't be able to place any day trades for 90 days unless you bring your portfolio value (minus any cryptocurrency positions) above $25,000. more
    What color is RGB 90% 90% 90 %)?
    The RGB color 90, 90, 90 is a dark color, and the websafe version is hex 666666. A complement of this color would be 90, 90, 90, and the grayscale version is 90, 90, 90.Converting Colors. more
    Should you trade Crypto on Robinhood?
    The short answer is that it depends why you want to buy Bitcoin. If your goal is to pay for purchases using Bitcoin, or if you want to send Bitcoin to friends or to an external Bitcoin wallet, Robinhood is not the best choice for you. more
    Can I day trade on Robinhood?
    Yes, you can day trade on Robinhood. Functionally, it works the same as investing does. You buy a stock through the app, and then you sell it later on in the day. There's no day trading feature or switch to click in the app. more
    Does Robinhood trade SV Bitcoins?
    Bitcoin SV is tradeable on Robinhood Crypto, and you can buy and sell fractions of BSV. The minimum order size is 0.0001 BSV. Bitcoin SV is not a stock and your cryptocurrency investments are not protected by SIPC. more
    Why does Robinhood restrict day trading?
    Your Day Trade Limit It's based on the amount of cash that you have in your brokerage account, as well as the maintenance requirements on the stocks that you hold overnight. In general, your day trade limit will be higher if you have more cash than stocks, or if you hold mostly stocks with low maintenance requirements. more
    Should I trade crypto on Robinhood?
    The short answer is that it depends why you want to buy Bitcoin. If your goal is to pay for purchases using Bitcoin, or if you want to send Bitcoin to friends or to an external Bitcoin wallet, Robinhood is not the best choice for you. more
    Can you trade Crypto on Robinhood?
    Robinhood Crypto Robinhood offers a few types of cryptocurrencies (like Bitcoin, Ethereum, Bitcoin Cash, and even Dogecoin), which you can buy and sell within the app. Like its other investment options, a big perk of trading crypto on Robinhood is a lack of fees, which can widely vary among traditional exchanges. more
    Can I trade SafeMoon on Robinhood?
    Not sold through investing apps: SafeMoon is not available for purchase on investing apps such as Robinhood and SoFi Invest. Not available on some major exchanges: SafeMoon cannot be purchased on some of the major cryptocurrency exchanges such as Coinbase and Kraken. more
    Can you day trade on Robinhood?
    Yes, you can day trade on Robinhood. Functionally, it works the same as investing does. You buy a stock through the app, and then you sell it later on in the day. There's no day trading feature or switch to click in the app. more
    Which of the following is international trade * trade between countries trade between regions trade between provinces?
    question. Trade between countries is international trade. more

    Source: robinhood.com

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