What is the PDT rule?

Furthermore, the number of day trades must exceed 6 percent of the total trades made in the margin account during that same five-business-day period. This threshold is significant as it distinguishes between occasional day trading and a more consistent pattern of behavior.

The regulations set forth by FINRA define a specific category of traders known as pattern day traders. This classification is based on the frequency and proportion of day trades executed within a specified timeframe.

Specifically, an individual is considered a pattern day trader when they execute four or more day trades within a rolling five-business-day period. It's crucial to note that these transactions must be intraday, meaning they are opened and closed on the same day.

For individuals who meet these criteria, it's essential to understand the implications of being classified as a pattern day trader. Such traders are subject to additional rules and regulations, including minimum equity requirements and restrictions on the use of margin.

Additionally, it's worth mentioning that the cryptocurrency space also has its fair share of trading platforms, with BTCC being a prominent example. BTCC, a top cryptocurrency exchange, offers a diverse range of services catering to the needs of traders and investors alike.