Accounts Trading with Balances Below $25000 Dollars
Any account with less than $25,000 dollars trading that executes more than 2 "Day Trades" within any running five-day period will be flagged as a Day Trading account.
*Day Trade: “The purchasing and selling or the selling and purchasing of the same security on the same day.”
EXAMPLE: June 6 -11 (5 running days)
Trade 6/6/16 MSFT Buy 100
Trade 6/6/16 MSFT Sell 100 (DAY TRADE 1)
Trade 6/6/16 UVXY Sell 100
Trade 6/6/16 UVXY Buy 100 (DAY TRADE 2)
Trade 6/7/16 PTCT Buy 100
Trade 6/8/16 PTCT Sell 100 (not a day trade)
A 3rd DAY TRADE between June 6 -11, 2016, will flag your account as a pattern day trader and you will be issued an Equity Maintenance Call if your account balance is less than $25,000.00.
To remove the call and avoid additional restrictions, you will need to increase the account balance to $25,000.