Overview
Effective June 4, 2026, FINRA’s new intraday margin rules (Rule 4210(d)(2)) replaces the previous Pattern Day Trader (PDT) restriction framework.
For all clients, this means:
This article explains what is changing and how it may affect your trading experience.
What’s Changing?
PDT Restriction Removed
The following PDT-related restrictions no longer apply:
If your account was previously marked as PDT, the restriction would be removed automatically after June 4 2026.
New: Intraday Margin Level (IML)
Your account now tracks an Intraday Margin Level (IML) throughout the trading day.
IML measures how much equity cushion your account has relative to the required maintenance margin.
In simple terms:
IML = Equity Liquidation Value (ELV) − SRO Maintenance Margin Requirement
For marginable stock
Long Stock trading, the SRO MMR = 25%
Short Stock trading, the SRO MMR = 30%
For Non-Marginable stock, the SRO MMR = 100%
*SRO = Self-Regulatory Organization
What does this mean?
Note: IML is calculated using Equity Liquidation Value (ELV), which does not include option market value.
How Transactions Affect IML
Different transactions impact IML differently.
| Transaction Type |
Typical IML Impact |
| Buy marginable stock (long) |
Reduces IML based on SRO margin requirement |
| Sell short marginable stock |
Reduces IML based on SRO margin requirement |
| Close related position |
Releases corresponding margin requirement |
| Buy/sell non-marginable stock |
Requires full market value |
| Options trading |
Based on maintenance margin requirement |
| Cash deposit |
Increases IML |
| Cash withdrawal |
Reduces IML |
IML is updated:
Do I Need to Worry About Intraday Margin Deficit (IMD)?
For most clients, the answer is no.
As long as you maintain reasonable equity relative to your trading size, these rules generally operate in the background and should not affect your normal trading experience.
However, in rare cases where aggressive trading causes your IML to become significantly negative, an Intraday Margin Deficit (IMD) may be generated.
If this happens:
-
A margin call may be triggered
-
Positions may be force liquidated
-
Additional risk controls or restrictions may apply to bring the account back into compliance
Frequently Asked Questions
Does this mean I can day trade freely now?
The PDT restriction has been removed. However, margin requirements still apply.
You still need sufficient account equity to support your trades. Forced liquidation may occur if margin requirements are not met.
Also, Moomoo does not promote day trading, which can be extremely risky. Day trading may not be appropriate for someone with limited resources, limited investing experience and low risk tolerance. Before considering day trading, read and understand the Day-Trading Risk Disclosure Statement. (
https://www.finra.org/rules-guidance/rulebooks/finra-rules/2270)
Does this apply to cash accounts?
No.
IML rules apply to margin accounts only.
Cash accounts continue to follow standard cash trading and settlement rules.
What if I had a PDT flag before?
No action is required.
All existing PDT flags and restrictions have already been removed automatically after June 4 2026.
Can I view my IML or IMD status?
IML/IMD details may not be displayed directly in the client interface.
In most cases, you do not need to actively monitor these values — the system manages intraday risk automatically in the background.
If you have questions regarding your account’s intraday margin status, please contact Customer Support.
Tel: +1-8887210610 (Mon-Fri 8:30 AM - 4:30 PM ET)
24/7 In-App Live Chat
Do I need to do anything differently?
For most clients, no.
As long as you maintain adequate equity relative to your positions, these rules will operate automatically and should not materially impact your normal trading activity.
NOTE: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeline for any particular purpose of the above content.