Day Trading Rules

What is a day trade?

A day trade occurs when you buy and sell the same security within a single trading day. This rule applies to all securities, including options. Pre-market and after-hours trades on the same trading day are included in the day trade count.

How many day trades can I make?

Day trade rules only apply in margin accounts. Below is the distinction between trading in a margin account vs. a cash account:

• Cash Account: You can execute an unlimited number of day trades using settled funds. However, trading with unsettled funds may result in a Good Faith Violation (GFV).
• Margin Account: If your net account value exceeds $25,000, you can make unlimited day trades. If your net account value is below $25,000, you are limited to 3 day trades every 5 rolling business days. Exceeding this limit will trigger an Equity Maintenance (EM) call.

What does "Day Trades Left" mean on my account page?

This refers to the number of day trades you can make within a rolling 5-business-day period before being flagged as a Pattern Day Trader (PDT). If you are not flagged as a PDT, you can make up to 3 day trades within this period. This counter helps you track your day trades to avoid exceeding the limit.

Where can I check my day trades left?

To view day trades left, please view the following instructions:

App:

1. Tap the Webull logo to select your account.
2. Select Detail ➝ Day Trades Left.

Desktop:

1. Click Account (if hidden, click on More).
2. Under the Account Details widget, click More right of Day Trades Left.

Why do I have 0 day trades left?

There are a couple reasons why you have no day trades left:

1. Net account value below $25,000: If your net account value is less than $25,000, you are limited to 3 day trades within a rolling 5-business-day period. If you've used all 3 day trades, you will have 0 day trades left until the rolling period resets.
2. Account restrictions or closures: Your account may be restricted or closed due to past-due margin calls.

What is a PDT Flag and can I still trade?

A Pattern Day Trader (PDT) flag is a regulatory designation applied to investors who execute four or more day trades within a five-business-day rolling period using a margin account. Once flagged as a PDT, FINRA requires that you maintain at least $25,000 of equity in your account at the close of every trading day.

If your margin account is flagged as a PDT while having less than $25,000 in equity, an Equity Maintenance (EM) call is issued. This margin call requires you to raise your account equity above $25,000 to continue day trading as a qualified Pattern Day Trader.

Restrictions during an Equity Maintenance (EM) call

You will be prevented from day trading and won't receive intra-day replenishment on closing transactions.

If you make a day trade during an EM call, your account will receive a Day Trade (DT) call for the full notional amount of the trade. Your account will remain restricted from day trading until both the EM and DT calls are satisfied or after 90 days.

You can still place opening transactions during an EM call if you plan to hold the position overnight, but you must disable PDT protection to do so.

How do I disable PDT protection?

App:

1. Tap the Webull logo to select your account.
2. Select Detail ➝ Day Trades Left.
3. Toggle off Pattern Day Trader Protection.

Desktop:

1. Select Account (if hidden, click on More).
2. Click Under the Account Details widget, click More right of Day Trades Left.
3. Toggle off Pattern Day Trader Protection.

What is a PDT flag?

Webull offers a one-time reset for a PDT (Pattern Day Trader) violation, which can only be used once during the life of your account. Alternatively, you can deposit additional funds or wait for market appreciation to increase your account equity to $25,000 or more to satisfy the EM (Equity Maintenance) call.

Please be aware that any day trades made while your PDT reset request is being processed will still count toward your day trade count the following day. Executing more than three day trades will immediately reclassify you as a pattern day trader.

How do I reset my PDT flag?

Please use the following instructions to reset your PDT status:

App:

1. Tap the Webull logo to select your account.
2. Select Risk Level ➝ Caution.
3. Tap the EM Call, then select Reset PDT ➝ Reset PDT Flag.

Desktop:

1. Click Account (if hidden, click on More).
2. Within the Account Details widget, find Risk Level.
3. Below Risk Level, click on the EM Call ➝ Reset PDT.
4. Complete the questionaire and submit.