As a non-pattern day trader, your account is limited to three (3) intraday (day) trades in a five-trading-day rolling period. This is a rolling five-day period and is not a week-by-week calculation. For example, if you place a trade on a Wednesday, the number of day trades will be calculated based on activity of the previous four trading days – Tuesday, Monday, Friday, and Thursday, with the present day as the fifth day.
The number of day trades is counted based on opening transactions. For example, if you buy 100 shares, then buy another 100 shares, and one hour later sell all 200 shares, this equates to two-day trades. However, if you buy 200 shares and then sell 100 shares one hour later, and an hour after that sell another 100 shares, this would be one-day trade.
If more than three-day trades are done in a five-day period and the account balance is less than $25,000, the account would be placed in a margin call. At that point you can request to go back to non-pattern day trader status, but this request can only be made once per lifetime of the account. Any subsequent violation of the NPDT rules would result in a requirement for the account to be funded to $25,000 in order to continue trading. Trade counts must be monitored by the account holder; our trading platforms will not prevent trade count violations.
Non-pattern day traders are also limited to 2x leverage on the equity in their account.