Core terms
Pattern day trader (PDT)
A former FINRA margin designation for customers who made four or more day trades within five business days (subject to a 6% activity test), with a $25,000 minimum equity requirement. FINRA replaced it with intraday margin standards effective June 4, 2026; firms may phase in until October 20, 2027.
Under the old rule, a margin account flagged as a pattern day trader needed at least $25,000 in equity to keep day trading, and accounts below that were restricted. FINRA Regulatory Notice 26-10 says the new intraday margin standards replace those day trading margin requirements in their entirety, removing both the day-trade count and the $25,000 minimum.
The change does not mean every broker switched on the same day. Firms may phase in the new standard until October 20, 2027, and brokers can keep stricter house rules.
What traders should verify
Ask your broker which regime applies to your account today and what its house rules are. Do not assume the $25,000 limit is gone until your broker confirms it.
Do not conflate
Many articles and forum posts still describe the old rule. Check the date on anything you read.