If you have a
margin account, are marked as a pattern day trader, and have more than $25,000 in total value in your account, there are multiple ways to increase your day trade buying power.
● Bringing more money into the account or bringing in more marginable securities will increase your day trade buying power.
● Day trade buying power is calculated at the start of each day and is generally four times your excess liquidity or cash, depending on whether you hold positions in your portfolio (in some cases, this can be two times instead).
● Your day trade buying power is restored at the beginning of each day.
Generally, the more positions you hold overnight, the lower your day trade buying power will be the following trading day. Furthermore, if you receive a DT call, your day trade buying power will be greatly reduced.
Keep in mind: In a pattern day trading account (PDT), anytime a day trade exceeds your available day trade buying power, a day trade call will be triggered.
If you believe you have been mistakenly flagged as a pattern day trader,
click here for information on how to request a removal of the flag.