What is the Pattern Day Trading (PDT) rule?

Last updated: 14. 11. 2025

The Pattern Day Trading (PDT) rule is a regulation set by the Financial Industry Regulatory Authority (FINRA) and applies to both full and limited margin accounts. Since all Kraken Equities accounts are limited margin accounts, the PDT rule does apply to all Kraken Equities accounts.

A day trade occurs when you buy and sell (or sell short and buy) the same security on the same trading day. This includes the Extended Hours Trading sessions.

Your account will be designated as a Pattern Day Trader if you make 4 or more day trades within a rolling 5 business day window, and the number of day trades represents more than 6% of the total trades within the same 5 business day window. If your account is flagged for PDT, you’re required to have an equity value of $25,000 or more in order to continue day trading. Accounts designated as Pattern Day Traders that close below the $25,000 minimum equity requirement but proceed to place a day trade, will be subject to a 90 day position closing only restriction.

Note: The last trading day equity is the sum of your securities (adjusted by their settlement value) in USD in your account at the end of the previous trading day.

 

User Protection
To protect users, Kraken implements two different guardrails.
 

PDT Status Protection
Accounts with less than $25,000 in equity will be allowed to only place 3 day trades within a rolling 5 business day period. If an account has placed 3 day trades and enters a new position, it will be unable to close that position until the following trading day in order to prevent being PDT restricted.

 

PDT Rule Violation Protection
If an account has been assigned PDT status and their equity value no longer meets the $25,000 requirement, accounts may enter a new position but will be required to wait until the next trading day to exit the position in order to prevent violating the PDT rule and be subject to a 90 day restriction.

 

PDT Status and Day Trade Counter
You can see your PDT status and how many day trades you have left in the Order form.

PDT Status and Day Trade Counter

You can see your PDT status and how many day trades you have left in the Order form.

PDT
Restricted

What if I reach the limit?

If you make three day trades within a five-day period and have less than $25,000 in stocks and ETFs in your account, you will not be able to place any additional day trades until your limit resets. 

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