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Once an account is coded as a “Pattern Day Trader”, can the account be re-coded as a non-day trading account?

April 26, 2017account coded pattern day trader re-coded trading

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Once an account is coded as a “Pattern Day Trader”, can the account be re-coded as a non-day trading account?

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A. No, not for a period of 90 days. If 90 days pass without any day trade transactions, your Pattern Day Trading designation will be removed and the surveillance process will start over. As an alternative, you may pay off the margin debit balance, close any short positions and trade in the cash account.