Pattern Day Trader

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Pattern Day Trader

A designation by the SEC of an investor who conducts more than four day trades in any five, consecutive trading days and for whom these trades make up at least 6% of his/her total trading activity. Because of the risk inherent to day trading, the SEC requires all pattern day traders to maintain at least $25,000 in equity in a margin account.
References in periodicals archive ?
200,000 for violating pattern day trading margin rules and for extending credit to customers in violation of federal securities laws and banking regulations.
In all, Scottrade permitted customers in 11,708 margin accounts in which pattern day trading was being conducted to execute 171,910 day trades when the values of their accounts were below the minimum equity requirement.