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.
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.
They also lack some of the disadvantages active traders are now facing, including decimalization issues, liquidity issues, and Pattern Day Trader
account requirements, such as the $25,000 minimum account requirement.