Pattern Day Trade Protection
We want to help you monitor your day trades, so we created the Pattern Day Trade Protection feature.
Pattern Day Trade Protection alerts you when you’ve placed three day trades and you’re about to place your fourth. You’ll have the option to proceed with your trade, or cancel it to avoid being marked as a pattern day trader.
Even if you turn off Pattern Day Trade Protection, we’ll still let you know when you’ve placed your second and third day trades in the five-day window. On your third day trade in the five-day window, we’ll remind you that you’ll be marked as a pattern day trader if you place one more day trade within the five days of your first day trade.
You can enable or disable this feature in your mobile app:
Pattern Day Trade Protection is simply a helpful warning, and it can’t guarantee the prevention of partial executions or day trades.
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 that same stock in the same day, Pattern Day Trade Protection will count that order as a 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 will not take into account any orders that receive 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. Please keep this in mind if you are placing very large orders, or orders on low-volume stocks.
We’ve designed our Pattern Day Trade Protection this way as an added precaution in the event that all of your placed orders do execute. This is also why we give you the option to override it and move forward with your order.