What is the Intraday Margin Rule?

Last updated: May 27, 2026

The Financial Industry Regulatory Authority (FINRA) has adopted new intraday margin standards to replace the outdated day trading requirements, or the Pattern Day Trading (PDT) framework, in their entirety. This includes the day trade count requirements for designating a customer as a “pattern day trader” and the $25,000 PDT minimum equity requirement. The new standards will give customers more freedom to participate in the markets while also ensuring customers maintain equity in their margin account commensurate with the amount of market exposure they have at any given point in time during the trading day. This is reflected in the amendments made to FINRA Rule 4210.

What changed

The PDT rule measured trading activity by counting the number of day trades you made in a rolling 5-business-day period. The regulatory transition shifts that focus entirely. Instead of counting trades, it measures the financial risk of positions you open and close within the same trading session.

-	PDT (before June 4, 2026)	IMM (effective June 4, 2026)
How it works	Counts day trades (buy + sell same security, same day)	Measures intraday risk exposure in real time
Trade limit	4 or more day trades in 5 business days triggers PDT status	No limit on number of trades
Equity requirement	$25,000 minimum to day trade without restriction	No $25,000 minimum requirement
Account designation	Pattern day trader label applied	No PDT designation

What this means for your Kraken Securities account

You can enter and exit positions as frequently as you choose without triggering a PDT designation.
The $25,000 minimum equity requirement no longer applies.
Account restrictions and trade rejections previously caused by PDT protections are eliminated.

What stays the same

Your Kraken Securities account is a limited margin account, but no credit or margin is extended to you. The margin designation allows you to trade with unsettled funds. When you sell a security, those proceeds typically settle within one business day (T+1). Rather than requiring you to wait for settlement before placing another trade, your account allows you to use those funds immediately.

Leveraged trading via margin is not available on the Kraken Securities platform.

Frequently asked questions

Is the Pattern Day Trader (PDT) rule still in effect?

The pattern day trader designation has been eliminated. Kraken Securities is no longer required to monitor or flag accounts that execute four or more day trades within a five-business-day window as of June 4th, 2026.

Does the new rule limit how many trades I can make?

No. The previous four-trade limit has been eliminated. You may enter and exit positions as frequently as you choose.

Is the $25,000 minimum equity requirement still in place?

No. The $25,000 minimum tied to pattern day trader status has been removed.

I only trade with my own cash. How does this affect me?

Your Kraken Securities account uses a limited margin designation to allow you to trade with unsettled funds. The Intraday Margin Rule removes the PDT restrictions that previously applied to margin accounts.

Please Note

While the rule takes effect June 4, 2026, the full rollout of new margin calculations in your account depends on system updates, including those at our Clearing Firm, which may require additional time to implement. We will communicate directly with you as soon as your account is fully transitioned to the new framework. The industry-wide deadline is October 20, 2027, and all eligible accounts will be updated no later than that date.

Disclosures

These materials are for informational purposes and not investment or financial product advice or a recommendation or solicitation to trade any security. All investing involves risk.

Margin trading involves significant risk and is not suitable for all investors. You can view the Margin Disclosure Statement here and full risk disclosures are available for review here.