How Can You Avoid The Pattern Day Trading (PDT) Rule And Day Trade With Less Than $25,000?

A pattern day trader (PDT) is a regulatory designation for those traders or investors that execute four or more day trades over the span of five business days using a margin account.

Please note that the Pattern Day Trading Rule only affects Margin Accounts.

Now, there is a way to circumvent the "Pattern Day Trading" rule, and that is to open a cash account. A lot of people aren't even aware that this option exists. The "Pattern Day Trading" rule requires that you have at least $25,000 in your account, however, a cash account circumvents that rule.

An added bonus about cash accounts is options funds clear nightly.