Trading FAQ
Yes, in a cash account with no PDT restriction — but settlement timing limits how often you can reuse the same $500. Here's exactly how the rules work.
FINRA eliminated the old $25,000 pattern day trader rule in June 2026 — here's what replaced it, and what still applies if your broker hasn't switched yet.
There's no PDT-style limit in a cash account — T+1 settlement and Good Faith Violations are what actually cap how often you can reuse the same money.
A Reg T call happens at the moment you buy on margin without enough initial margin. A maintenance margin call happens later, after prices move against an open position.
No — the SEC eliminated the $25,000 pattern day trader minimum for stocks and options starting June 4, 2026. Here's the new $2,000 threshold and what still applies during the rollout.
No, not currently — the IRS treats crypto as property, not a security, so the 30-day rule doesn't apply to direct crypto trades. There's one exception: spot Bitcoin ETF shares.
Most large brokers switched on or within days of June 4, 2026, but FINRA gave firms until October 20, 2027 to fully implement it — here's what's confirmed broker by broker.
A good faith violation means you eventually paid, just late. Freeriding means you never deposited real money at all — and it triggers a 90-day freeze after just one violation.
No — futures accounts are regulated by the CFTC and NFA, not FINRA, so PDT and its 2026 replacement never applied to them. Here's what actually limits a futures day trader instead.