Pdt Rule

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The PDT rule (Pattern Day Trader rule) is the FINRA regulation that limits traders with less than $25,000 in their margin account to no more than three day trades within a five-business-day period. For traders approaching or under this threshold, every trade decision becomes more consequential — making the quality of your scanner and trade selection critical to maximizing limited trading opportunities. Articles here explain how the PDT rule works in practice, common misconceptions, and strategies for trading effectively within its constraints.