Within how many business days must a pattern day trader make their trades to maintain their status?

A pattern day trader must execute at least four day trades within a rolling five-business-day period to maintain their status. This is significant because it distinguishes their trading behavior from that of regular traders, attracting specific regulations and requirements under FINRA rules.

Maintaining the pattern day trader status means that the trader is engaging in frequent buying and selling of securities within the same day, showing a pattern of such activity over this five-business-day timeframe. Failing to meet this frequency may result in a reassessment of their status, which can affect margin requirements and trading activity. Understanding this rule is crucial for anyone involved in frequent trading to ensure compliance with regulatory frameworks.