Day Trading Margin Rule
Effective September 28th, 2001 the NYSE and FINRA imposed a $25,000 minimum equity requirement
for "pattern day traders." Consistent with the new margin rules, if a thinkorswim client's
margin account falls under $25,000 and the client has opened and closed positions on the
same day three times within five days, the client will not be allowed to open new positions
until the $25,000 requirement is restored or the five days have elapsed.
Additionally, for a designated a "pattern day trader" account, the client is allowed on
any day to open new positions up to a total of the account's Day Trading Buying Power
(defined as four times the difference of your account equity less maintenance margin requirements). The rule
requires orders exceeding Day Trading Buying Power to be rejected.
See our Day Trading Disclosure Statement for more information.