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Pattern Day Trading

A day trade is defined as “The purchasing and selling or the selling and purchasing of the same security on the same day in a margin account.” FINRA Rule 4210(f)(8)(B). According to Financial Industry Regulatory Authority (FINRA) rules, "Any customer who executes four or more day trades within five business days, provided that the number of day trades represents more than six percent of the customer’s total trades in the margin account for that same five business day period." FINRA Rule 4210(f)(8)(B)(ii). All brokerage firms that are registered in the United States, regulated by FINRA, and regulated by the New York Stock Exchange are subject to day trading rules.
Keep In Mind:
● The FINRA Pattern Day Trading Rules only apply to margin accounts.

● If you open a position and then the position is closed out on the same day due to forced liquidation, it would be counted towards your total day trades.

● If you execute four or more day trades within any five consecutive business days, and the number of day trades represents more than 6% of your total trades within your margin account for that same five trading day period. You will be flagged as a PDT, regardless of whether your account equity is greater than $25,000 or not. You can click here for details.

● Only filled orders are considered and counted as day trades. Pending or unfilled orders, including those that are later canceled, are not counted toward your total day trades. For further information, click here.

This presentation is for informational and educational purposes only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided herein 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, investment time horizon, or risk tolerance, and does not constitute investment advice. 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. All investments carry risks, including the potential for loss of principal. 

Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. 

In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). 

 

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