Questions pertaining to the Pattern Day Trading Rule

hb7of9

Junior member
43 4
As the title states, some questions regarding the pattern day trading rule.

What is it and why is there such a rule?

Does it only apply to US citizens, for example if I am a Japanese Citizen trading / investing using a US broker, (Interactive Brokers), does this rule still apply?

Your insight will be much appreciated.
 
Last edited:

timsk

Legendary member
7,375 2,164
I don't understand this apparent aversion to using Google.
Or, closer to home, T2W's search facility: 25000 dollar "pattern day trader" minimum applicable to UK stocks?

hb7of9 - the reason for the PDT rule is part and parcel of the red tape one goes through when opening an account with a broker. If something goes very wrong - which it frequently does with trading - then the authorities need to cover their backsides. If something goes tragically wrong, then questions are asked and demands are made by politicians and their like. The PDT rule helps to prevent a trader from blowing up, i.e. losing all of their capital. This in turn, helps to prevent them losing the plot and doing a Mark Barton.

There are those who argue that the U.S. would do better to reform their gun laws than to raise the entry bar to trading equities - but that's a another topic for another day!
;)
Tim.
 

Trader333

Moderator
8,605 932
Does it only apply to US citizens, for example if I am a Japanese Citizen trading / investing using a US broker, (Interactive Brokers), does this rule still apply?


Yes it does apply.
 
 
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