What triggers the label
In US margin accounts, placing four or more day trades within five business days can classify the account as a pattern day trader, which carries a minimum equity requirement.
Practical consequences
Traders under the threshold often trade fewer, higher-quality setups, use a cash account, or hold positions slightly longer. Each choice changes the strategy, not just the paperwork.
Check the current rules
Regulatory details change and brokers apply them differently. Treat this page as orientation and confirm the current requirements with your broker before relying on them.
Educational content only. TradeCaster does not provide financial advice and past results never imply future performance.