Pattern Day Trader (PDT) Buying Power & Margin Calculator
Calculate 4x day trading buying power, 2x overnight margin, minimum $25,000 equity requirement, and FINRA PDT count rules.
Understanding FINRA Pattern Day Trader (PDT) Rules
FINRA Rule 4210 mandates that US margin account holders who execute 4 or more day trades (opening and closing a stock or option position on the same business day) within a rolling 5-business-day window are designated as Pattern Day Traders (PDT). PDT accounts must maintain a minimum account equity of $25,000 USD to continue day trading.
PDT Day Trading Buying Power Formula
Intraday Day Trading Buying Power = Excess Maintenance Margin Equity × 4 Multiplier. Maintenance Margin Requirement = Open Positions Market Value × 25%. Excess Equity = Account Equity − Maintenance Margin. If account equity drops below $25,000 USD, intraday buying power is restricted to 2x overnight margin.
How to Use This PDT Buying Power Calculator
Enter total account equity ($), number of day trades executed in the last 5 business days, current open positions market value ($), and account leverage structure. The calculator computes exact intraday day trading buying power, overnight buying power, PDT compliance status, and remaining allowed day trades.
Avoiding PDT Account Locks and Margin Calls
Executing a 4th day trade in a rolling 5-day window with account equity under $25,000 triggers an automatic PDT flag, restricting your account to liquidation-only mode for 90 days or until additional funds are deposited to restore $25,000 equity.
Frequently Asked Questions
What is the $25,000 PDT rule?
FINRA requires margin account traders to hold at least $25,000 in equity to execute more than 3 day trades in 5 rolling business days.
How is intraday day trading buying power calculated?
Intraday buying power equals 4 times your excess maintenance margin equity at the close of the previous trading day.
Do cash accounts fall under the PDT $25,000 rule?
No! Cash accounts are exempt from the PDT $25,000 rule, but trades are limited by settled cash settlement times (T+1).