What happens once an account is classified as a Pattern Day Trader?
Pattern day trading accounts must maintain $25,000 in equity to allow unrestricted access to day trading buying power which is generally four times maintenance excess. Pattern day trading accounts with less than $25,000 will have day trading buying power limited to two times maintenance excess. In addition, a Day Trading Minimum Equity Call will be issued in the account. The call will remain open until the equity is raised to $25,000. Officially it is said that pattern day trader accounts with less than the $25,000 minimum equity requirement should consider limiting day trading activities to cash only transactions until the minimum equity amount is reached in order to avoid a Day Trading Buying Power Call. A Day Trading Buying Power Call (see FAQ 2.7) is issued when you do two or more day trade round trips within one single day and you then in effect have used the unreplenished day trading buying power (by buying the later positions using your regular buying power rather than the unava
