What happens if I make 4 trades a day?
Asked 4 years ago
Does making 4 trades a day count as pattern day trading?
Andia Rispah Igobwa
Thursday, December 09, 2021
Depending on your brokerage, the situation may be more or less severe. If your broker has a more forgiving policy, the penalties may not be so terrible if you are a first-time offender.
However, since your broker wants to keep an eye on your actions for any repeat or consistent offenses, you will almost certainly be flagged a pattern day trader (in the ill-meaning sense). So proceed with caution.
Some brokerages may subject you to a minimum equity call if you make four-day trades in a rolling five days. They may require you to deposit enough cash to have a minimum account value of $25,000 (even if you don't intend to day trade regularly).
You may be prohibited from opening new positions if you make an extra day trade while flagged.
Please follow our Community Guidelines
Related Articles

Comparing VFV ETF vs ZSP, VOO, SPY, VUN, XUU, XUS and More
Filip Dimkovski
October 7, 2021

Day Trading Options: Best Brokers and Beginner Strategies
Filip Dimkovski
December 23, 2024

Binance Faces Class Action Lawsuit as US Supreme Court Denies Appeal
Adam Walker
January 14, 2025
Related Posts
Andrew Moran
How to Day Trade Without 25k
Andrew Moran
The PDT Rule: Why You Need 25k to Day Trade
Andrew Moran
How Much Does a Pattern Day Trader Make?
Can't find what you're looking for?
