The Financial Industry Regulatory Authority (FINRA) has adopted new intraday margin standards to replace the outdated day trading requirements, or the Pattern Day Trading (PDT) framework, in their entirety.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.
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 |
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.
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.
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.
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.