Pattern Day Trading (PDT) Rule Removed: Intraday Margin Rules

The $25,000 PDT minimum no longer applies. As of June 4, 2026, FINRA Rule 4210 day-trading margin provisions are replaced in their entirety by intraday margin standards, as described in FINRA Regulatory Notice 26-10 (April 20, 2026).

What changed on June 4, 2026

• The "pattern day trader" (PDT) designation is removed. Day-trade count requirements no longer apply.
• The $25,000 PDT minimum equity requirement is removed.
• The general margin account minimum equity of $2,000 remains in place for leveraged trading.
• Maintenance margin percentages did not change. What changed is when maintenance is checked — now through the trading day, not only at end of day.
• The new intraday margin standards apply to any margin account, not only accounts above the former $25,000 PDT floor.
• The phrase "pattern day trader" is no longer a regulatory classification.

Key definitions

• Intraday Margin Level (IML) — the equity in your margin account minus the maintenance margin requirement on your open positions. IML represents the cushion above your maintenance requirement.
• Intraday margin deficit — the largest negative IML observed during the day following a transaction that opens or increases market exposure. This is what becomes a call the customer is required to satisfy.
• For specific IML, intraday margin deficit, or maintenance requirement values on your account, contact support.

How an intraday margin deficit is satisfied

• Per FINRA Rule 4210(d)(2)(C), an intraday margin deficit must be satisfied "as promptly as possible." Under the rule, a deficit may be satisfied by net deposits of cash or securities or by an increase in the account's intraday margin level (for example, by reducing or closing positions).
• Under the FINRA rule, a deficit remains outstanding until satisfied or until immediately after the close of business on the 15th business day after the date of the deficit.
• Clear Street's customer agreement governs the firm's rights with respect to margin, risk management, and any actions the firm may take in response to a margin deficit. For account-specific guidance on a margin deficit on your account, contact support.

90-day freeze framework

• Per FINRA Rule 4210(d)(2)(D), if a customer makes a practice of failing to satisfy intraday margin deficits as promptly as possible and fails to satisfy a deficit by the close of business on the 5th business day after it occurs, the firm must apply procedures designed to prevent the customer from creating or increasing a short position or debit balance (other than by closing a short position) for 90 calendar days after that fifth business day, or until the deficit is satisfied.
• A customer is not considered to be making such a practice if either of the following applies:
  • The deficits do not exceed the lesser of 5% of the equity in the margin account or $1,000 (de minimis exception).
  • The deficits arose under extraordinary circumstances as reasonably determined by the firm.
• For account-specific questions about whether a 90-day restriction has been or could be applied, contact support.

Intraday vs. overnight margin

• The intraday margin standards apply during the trading day. Positions carried past the close are re-margined for overnight purposes. For an initial overnight hold, the applicable requirement is generally the Reg T initial margin requirement, typically 50% for marginable equity securities, or Clear Street's house requirement if higher. Overnight house requirements are separate from the June 4 intraday rule change and may be stricter depending on the position, account, or risk factors.
• Clear Street's specific overnight house margin requirements are not published in this article. For account-specific overnight margin requirements, contact support.

Common questions

• Is PDT going away? As of June 4, 2026, the "pattern day trader" designation and the $25,000 PDT minimum equity requirement are removed. They are replaced by intraday margin standards under amended FINRA Rule 4210.
• What replaced PDT? Intraday margin standards. Under the amended rule, account equity is generally evaluated against market exposure throughout the trading day, rather than being gated by day-trade counts.
• Did the margin percentages change? No. Maintenance percentages did not change. What changed is when maintenance is checked — now through the trading day, not only at end of day.
• What is the $25,000 minimum now? It no longer applies. The general margin account minimum equity of $2,000 still applies for leveraged trading.

Contact support for

• Your specific intraday margin level, intraday margin deficit, or maintenance requirement.
• Whether a specific trade would create or affect an intraday margin deficit on your account.
• Margin calls, restrictions, or whether a 90-day freeze applies to your account.
• Clear Street's specific overnight house margin requirements for a position you hold or are considering.

See also: 📄 Regulation T and Margin Basics and 📄 How Buying Power is Calculated