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What is a pattern day trader and do day trading rules apply to options?

April 26, 2017day trading Options Pattern rules trader

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What is a pattern day trader and do day trading rules apply to options?

1 Answer

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10 Posted

Trade4Life way of trading doesn’t advocate day trading options because it simply isn’t the best method to trade stock options and we do want to live life and not be absolutely glued to a monitor all day. With that said, you will be considered a pattern day trader if you trade stock options 4 or more times in 5 business days and your day trading activities are greater than 6 percent of your total trading activity for that same five-day period. If you are deemed a day trader, you will need to have a minimum of $25K on your trading account.