When you continuously buy and sell investments within a very short time, perhaps a few minutes or hours, and rarely hold them overnight, you're considered a day trader.
The Financial Industry Regulatory Authority (FINRA) has implemented strict requirements for accounts that actively day trade. To identify these accounts, FINRA has defined a Pattern Day Trader as someone who completes four or more day trades in a rolling five business days.
What is the definition of a "Pattern Day Trader"? What is a Day Trade? Will Pattern Day Traders be required to have a margin account?