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Margin Accounts – What happens if I execute several “day-trades?”

Questions › Category: Questions › Margin Accounts – What happens if I execute several “day-trades?”
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Scott Collins asked 5 years ago
I work for a brokerage firm. So I have to trade at the firm. Investors should know if trading same day as happens to be the case lately one probably needs to have a margin account. As trades bought and sold same day can trigger pattern day trader warnings demanding I set up margin. Not sure how they handle day trades in IRA. 
2 Answers
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Avatar photoOwen Staff answered 5 years ago

Hi Scott,
Pat answered two questions in one video, so I cut it up into the two parts. The hard cuts make it sound a little choppy.
But, then I thought... hey, the market has been so choppy of late, it's likely nobody will. ;-)
https://youtu.be/YdAnZirdEqM

Scott Collins replied 5 years ago

I’ll get clarification. Account is over 25,000.

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Avatar photoOwen Staff answered 5 years ago

Follow-up from my own experience: My experience is the same as Pat's. Once a person executes several day trades over a period of days. (3 trades over some period of a few days) That account is tagged as a PDT (Pattern Day Trader) account. It's been a long time ago, but I don't recall anything other than a simple notification.