Day Trading Disclosure Summary
June 2026
Regulatory Update: PDT Framework Eliminated (Effective June 4, 2026)
Effective June 4, 2026, FINRA Rule 4210 was amended, and the Pattern Day-Trader (PDT) designation has been eliminated. SageTrader no longer classifies or tracks accounts as "Pattern Day-Traders" based on trading frequency, and the previous $25,000 minimum equity requirement for day trading no longer applies. Accounts are now subject to standard margin account minimums.
Intraday Margin Monitoring
In place of the PDT framework, SageTrader now monitors accounts for intraday margin deficits (IMDs) that may arise from day-trading activity.
Buying power is calculated based on real-time intraday margin, rather than solely on the prior day's closing account value.
Key Risk Warnings
Day trading generally is not appropriate for someone of limited resources and limited investment or trading experience. Day trading should not be funded with retirement savings, student loans, second mortgages, emergency funds, or funds otherwise needed for living expenses.
Evidence suggests an investment of less than $50,000 will significantly impair a day trader's ability to make a profit.
Day trading can generate substantial commissions, even where the per-trade cost is low, because of the number of trades typically involved.
Day trading on margin or short selling may result in losses beyond the amount of funds originally deposited.