Pattern Day Trade Protection

Pattern Day Trade Protection alerts you when you’ve placed 3 day trades and you’re about to place your 4th. You’ll have the option to proceed with your trade, or cancel it to avoid being marked as a pattern day trader.

Keep in mind

Even if you turn off Pattern Day Trade Protection, we’ll still let you know when you’ve placed your 2nd and 3rd day trades in the 5-day window. On your 3rd day trade in the 5-day window, we’ll remind you that you’ll be marked as a pattern day trader if you place 1 more day trade within 5 days of your 1st day trade.

To turn Pattern Day Trade Protection on or off:

  1. Select AccountMenu (3 bars) or Settings (gear)
  2. Select Investing
  3. Select Pattern Day Trade Protection, and then switch it On or Off
Note

Pattern Day Trade Protection is simply a helpful warning, and it can’t guarantee the prevention of partial executions or day trades.

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Multiple executions and pending orders

Pattern Day Trade Protection will consider all the orders you’ve placed–not only orders that’ve executed. For example, if you’ve purchased a stock and then set a sell limit order on the same day for the same stock, Pattern Day Trade Protection will count that order as 1 day trade, regardless of whether or not it gets executed. However, if the trade does not execute, it won’t actually count as a day trade for regulatory purposes.

Also, Pattern Day Trade Protection doesn’t account for orders with multiple executions. If an order you place fills through multiple executions instead of a single fill, you may not receive the Pattern Day Trade Protection warning. Keep this in mind when placing very large orders, or orders on low-volume stocks.

Pattern Day Trade Protection is designed as an added precaution that you can override and move forward with an order.

Reference No. 2861606
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Brokerage services are offered through Robinhood Financial LLC, (RHF) a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (RHS) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (RHC) (NMLS ID: 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. The Robinhood spending account is offered through Robinhood Money, LLC (RHY) (NMLS ID: 1990968), a licensed money transmitter. A list of our licenses has more information. The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard®. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC is not a member of FINRA and accounts are not FDIC insured or protected by SIPC. RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Check out Robinhood Financial’s Fee Schedule for details.

© 2023 Robinhood. All rights reserved.