A brokerage firm also may designate an investor as a pattern day trader if it knows or has a reasonable basis to believe that the investor is a pattern day trader.
Answer--A pattern day trader must maintain minimum equity of $25,000 on any day that the customer day trades.
The rules permit a pattern day trader to trade up to four times the maintenance margin excess in the account as of the close of business of the previous day.
In addition, the rules require that any funds used to meet the day-trading minimum equity requirement or to meet any day-trading margin calls remain in the pattern day trader's account for two business days following the close of business on any day when the deposit is required.
Answer--Investors are considered pattern day traders if they trade 4 or more times in 5 business days and their day-trading activities are greater than 6% of their total trading activity for that same five-day period.