---
title: Day Trading — PDT Rule Eliminated
group: Trading
subtitle: The $25,000 Pattern Day Trader rule was eliminated on June 4, 2026.
description: How day trading works at Light Horse Securities after FINRA Rule 4210 was amended on June 4, 2026 to eliminate the $25,000 Pattern Day Trader requirement.
---

## The Old Rule Is Gone

Effective **June 4, 2026**, the SEC approved FINRA's elimination of the Pattern Day Trader (PDT) framework under amended FINRA Rule 4210. The long-standing restrictions that limited retail investors are no longer in effect.

**What was eliminated:**

- The **$25,000 minimum equity requirement** for day trading accounts
- The **4-trades-in-5-rolling-days counter** that triggered the PDT designation
- The **90-day trading freeze** imposed on PDT-flagged accounts with insufficient equity

## How Day Trading Works Now

Day trading buying power is now calculated **dynamically in real time** based on your account's margin excess, not a fixed $25,000 threshold.

**Cash accounts**

In a cash account, you can day trade using **settled cash** only. Each time you sell a position, the proceeds take **2 business days (T+2)** to settle before they can be used to purchase new securities. This means you need to be mindful of how many round-trip trades you can complete with your available settled cash.

**Margin accounts**

If you have margin enabled, your intraday buying power is calculated in real time based on your account equity and margin excess. You can open and close positions on the same day without restriction, subject to your available margin.

## What Hasn't Changed

- **Options still require margin approval** — see the [Options Trading](/instructions/trading/options-trading) article
- **Short selling still requires a margin account** and share availability
- **Margin interest** applies to overnight positions held on margin (6.75% annually at Light Horse)
- Standard **regulatory fees** (SEC, TAF) still apply to sell transactions

## Light Horse and the New Rules

Light Horse is fully compliant with the updated FINRA Rule 4210 framework. If you previously avoided day trading due to the $25,000 barrier, you can now trade freely within the limits of your account's settled cash or available margin.

## Frequently Asked Questions

### Do I need $25,000 to day trade at Light Horse?

No. The $25,000 minimum equity requirement was eliminated effective June 4, 2026. You can day trade with any account balance, subject to your available settled cash or margin.

### What replaced the PDT rule?

FINRA replaced the PDT framework with a real-time intraday margin system under amended Rule 4210. Day trading buying power is now calculated dynamically based on your account's margin excess.

### Can I day trade in a cash account?

Yes, but only with settled cash. Stock sale proceeds settle in T+2 (2 business days), so you'll need to manage your settled cash balance carefully to avoid free-riding violations.

### Is there a limit on how many day trades I can make?

There is no longer a fixed limit. Your day trading activity is limited only by your available settled cash (cash accounts) or real-time margin excess (margin accounts).