Day Trading Rules

What is a day trade?

A day trade occurs when the same security is bought and sold within a single trading day. This applies to all securities, including options. Trades executed during pre-market and after-hours sessions also count toward the day trade total.

How many day trades can I make?

Day trading rules only apply to margin accounts.

• Cash Account: Unlimited day trades are allowed using settled funds. Using unsettled funds may trigger a Good Faith Violation (GFV).
• Margin Account: If your net account value exceeds $25,000, you can make unlimited day trades. If your net account value is below $25,000, you are limited to 3 day trades within a rolling 5-business-day period. Exceeding this limit triggers a Pattern Day Trader (PDT) flag and an Equity Maintenance (EM) call.

What does "Day Trades Left" mean on my account page?

This refers to the number of day trades you can make within a rolling 5-business-day period before being flagged as a Pattern Day Trader (PDT). If you are not flagged as a PDT, you can make up to 3 day trades within this period. This counter helps you track your day trades to avoid exceeding the limit.

Where can I check my day trades left?

To view day trades left, please view the following instructions:

App:

1. Tap the Webull logo to select your account.
2. Select Detail ➝ Day Trades Left.

Desktop:

1. Click Account (if hidden, click on More).
2. Under the Account Details widget, click More right of Day Trades Left.

Web:

1. Click Account (if hidden, click on More).
2. Click the highlighted blue numbers underneath the Account section.

Why do I have 0 day trades left?

There are a couple reasons why you have no day trades left:

1. Net account value below $25,000: If your net account value is less than $25,000, you are limited to 3 day trades within a rolling 5-business-day period. If you've used all 3 day trades, you will have 0 day trades left until the rolling period resets.
2. Account restrictions or closures: Your account may be restricted or closed due to past-due margin calls.

What is a Pattern Day Trader (PDT) flag?

A Pattern Day Trader (PDT) flag is applied when you place four or more day trades within a rolling five-business-day period in a margin account. Once flagged, FINRA rules require that your account maintains at least $25,000 in equity at the close of each trading day to continue day trading.

What happens if I'm flagged as a PDT with less than $25,000 in my account?

If you're flagged while holding less than $25,000 in equity, an Equity Maintenance (EM) Call is issued. You must bring your account equity above $25,000 to regain day trading access.

During an EM call:

• Day trading is not allowed.
• Buying power does not replenish after closing a position.
• If you place a day trade, a Day Trade (DT) Call is triggered for the full notional value of the trade.
• The DT call expires after 90 calendar days if unmet.
• The EM call must be fully satisfied to lift trading restrictions.

Can I still place trades during an EM call?

Yes, but only if you plan to hold the position overnight. You must disable PDT protection in your account settings to place opening trades. Day trading is not permitted until the EM call is resolved.

How can I remove the PDT flag?

Webull offers a one-time PDT reset per account. This permanently removes the flag, but:

• It can only be used once per account lifetime.
• Day trades placed during the review period still count.
• Exceeding the limit again during the reset process may result in a new PDT flag.

Alternatively, you can remove the EM call by:

• Depositing funds to meet the $25,000 equity minimum.
• Waiting for your account value to appreciate above $25,000.

How long does a PDT reset take?

PDT reset requests are typically processed within 1 to 3 business days. During this review period, the PDT flag remains active and the account is still subject to day trading restrictions. You will receive a confirmation once the reset has been approved and applied to your account.

How do I reset my PDT flag?

Please use the following instructions to reset your PDT status:

App:

1. Tap the Webull logo to select your account.
2. Select Risk Level ➝ Caution.
3. Tap the EM Call, then select Reset PDT ➝ Reset PDT Flag.

Desktop:

1. Click Account (if hidden, click on More).
2. Within the Account Details widget, find Risk Level.
3. Below Risk Level, click on the EM Call ➝ Reset PDT.
4. Complete the questionaire and submit.

How do I disable PDT protection?

App:

1. Tap the Webull logo to select your account.
2. Select Detail ➝ Day Trades Left.
3. Toggle off Pattern Day Trader Protection.

Web:

1. Select Account (if hidden, click on More).
2. Click the highlighted blue numbers underneath the Account section.
3. Toggle off Pattern Day Trader Protection.

Desktop:

1. Select Account (if hidden, click on More).
2. Click Under the Account Details widget, click More right of Day Trades Left.
3. Toggle off Pattern Day Trader Protection.

How are day trades tallied when trading multi-leg options strategies?

When using multi-leg options strategies, day trades are tallied based on the opening and closing of individual legs, even when placed as a combined order. Each leg is tracked independently, and a day trade is counted whenever a position is both opened and closed on the same trading day.

Example 1 – Basic Roll Forward (One leg closed, one opened)

• Buy XYZ $23 Call, Write XYZ $24 Call (placed as a multi-leg order) = 1 Opening Trade (Open/Open)
• Buy XYZ $24 Call, Write XYZ $25 Call (placed as a multi-leg order) = 1 Mixed Trade (Close/Open)

Day trade tally: The closing leg from the first combo matches its original opening, resulting in 1 day trade.

Example 2 – Multiple legs unwinded across different combos

• Buy XYZ $23 Call, Write XYZ $24 Call (placed as a multi-leg order) = 1 Opening Trade (Open/Open)
• Buy XYZ $24 Call, Write XYZ $25 Call (placed as a multi-leg order) = 1 Mixed Trade (Close/Open)
• Buy XYZ $22 Call, Write XYZ $23 Call (placed as a multi-leg order) = 1 Mixed Trade (Open/Close)

Day trade tally: The two closing legs match the original $23/$24 opening, resulting in 1 day trade.

Example 3 – Legs opened separately, closed together

• Buy XYZ $23 Call = Opening Trade
• Write XYZ $24 Call = Opening Trade
• Buy XYZ $24 Call, Write XYZ $23 Call (closed with a multi-leg order) = 1 Closing Trade (Close/Close)

Day trade tally: Two individual opens are matched with a single closing combo, resulting in 1 day trade.

Example 4 – Legs opened together, closed separately

• Buy XYZ $23 Call, Write XYZ $24 Call (placed as a multi-leg order) = 1 Opening Trade
• Close XYZ $24 Call = Closing Trade
• Close XYZ $23 Call = Closing Trade

Day trade tally: Two closing trades match the original combo opening, resulting in 1 day trade.

Example 5 – Multiple legs opened and closed across staggered combos

• Buy XYZ $23 Call, Write XYZ $24 Call (placed as a multi-leg order) = 1 Opening Trade (Open/Open)
• Buy XYZ $24 Call, Write XYZ $25 Call (placed as a multi-leg order) = 1 Mixed Trade (Close/Open)
• Buy XYZ $22 Call, Write XYZ $23 Call (placed as a multi-leg order) = 1 Mixed Trade (Open/Close)
• Write XYZ $22 Call, Buy XYZ $25 Call (placed as a multi-leg order) = 1 Closing Trade (Close/Close)

Day trade tally: The original $23/$24 position is closed across two combos, resulting in 1 day trade. The $22/$23 and $24/$25 opens are closed in the final combo, resulting in a second day trade. Total: 2 day trades.