Receiving a PDT flag

What is a PDT Flag and can I still trade?

A Pattern Day Trader (PDT) flag is a regulatory designation applied to investors who execute four or more day trades within a five-business-day rolling period using a margin account. Once flagged as a PDT, FINRA requires that you maintain at least $25,000 of equity in your account at the close of every trading day.

If your margin account is flagged as a PDT while having less than $25,000 in equity, an Equity Maintenance (EM) call is issued. This margin call requires you to raise your account equity above $25,000 to continue day trading as a qualified Pattern Day Trader.

Restrictions during an EM call:

• You will be prevented from day trading and won't receive intra-day replenishment on closing transactions.
• If you make a day trade during an EM call, your account will receive a Day Trade (DT) call for the full notional amount of the trade. Your account will remain restricted from day trading until both the EM and DT calls are satisfied or after 90 days.
• You can still place opening transactions during an EM call if you plan to hold the position overnight, but you must disable PDT protection to do so.