If you have been flagged as a pattern day trader within the last 90 days, and you exceed your day trade limit, you will get a day trade call. Selling stock does not increase your day trade limit that day. If you want to increase your day trade limit, you will have to deposit funds. If you have more cash than stocks in your account, or if the stocks you hold have low maintenance requirements, your day trade limit will be higher than it would be otherwise. The formula for calculating your day trade limit is based on the amount of cash in your account and the maintenance requirements on the stock positions you hold overnight. In other words, the day trade limit you have first thing in the morning will remain for the rest of the day. Go to the Account tab in the lower right corner, then to the Margin Investing section, and look for “Today’s Day Trade Limit.” It can change from one day to the next, but it won’t change during the day. Your day trade limit can be found on the app. There is a limit to the amount you can trade each day, and you need to know what that limit is to avoid a day trade call. Plus, you can set up your app to alert you when you’re about to place your fourth day trade of the day. Robinhood does offer a Day Trade Counter in the app to help keep you from going over the limit of day trades. They are FINRA requirements, and every brokerage enforces them. Note that these pattern day trading restrictions are not unique to Robinhood. If you trade outside of these restrictions, your account will be restricted from purchasing for 90 days. Traders with a cash account are not affected since this account does not allow for margin trades. This portfolio value does not include cryptocurrency. Robinhood will flag you as a pattern day trader unless you have a portfolio of at least $25,000 in your Instant or Gold account as of the end of the previous trading day. A day trade is defined as buying and selling the same stock or opening and closing the same option position in the same day, so positions held overnight don’t count. Traders who execute four or more day trades within a five-day period, representing more than 6% of your total trades in that five-day period, are considered pattern day traders by FINRA.
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