This rule will not apply if you have more than $25,000 in your account.
Why does this rule exist?
It was initially designed to protect traders from overtrading. Many traders agree though that you are at a considerable disadvantage with this rule as you may get stuck in a trade not being able to get rid of your position (shares you own) anymore. If you are still in a position after your 4th day-trade, you have to wait until the 5-day period is over to close your position.
Who is this rule for?
It only applies to U.S. citizens for trading accounts that are in the U.S.
How can I get around this rule?
The only way to get around it is to find a broker that is outside the US. That’s why we recommend checking out one of these brokers where the PDT does not apply.