My account has been flagged for pattern day trading, what happens now?
You are flagged as a pattern day trader if you execute 4 or more day trades within 5 business days. If you did not intend to engage in day trading you may be eligible to request a one time courtesy lift of the pattern day trading flag.
If you have already utilized your one-time courtesy lift, and you are flagged for pattern day trading again, the flag cannot be removed and as a result you will need to maintain a minimum trading equity value of $25,000 on a permanent basis in order to execute day trades without further restrictions.
If your equity value is below $25,000 and you are flagged as a pattern day trader, your account will be restricted if you execute another day trade. A pattern day trading restriction means you will be suspended from further purchases in your account for a period of 90 calendar days, or until you end a trading day with an equity value greater than $25,000 in your trading account. A pattern day trading restriction prevents you from purchasing any new securities. However, your ability to sell positions, and deposit/withdraw funds will remain unaffected.
If at any point you end the trading day with equity value of $25,000 or greater, the pattern day trading restriction is eligible to be removed the following day. Removal of the trading restriction does not mean the pattern day trading flag is removed, the flag will remain in effect on your account permanently.