What is the definition of a "Potential Pattern Day Trader"?
A potential pattern day trader notification warning is a message stating the number of Day Trades the remaining infractions that can occur before you are subject to FINRA’s and DriveWealth’s requirements to allow the account to function under the Day Trader parameters.
One significant requirement is that a customer will be required to have minimum of $25,000 in equity for the account.
If the Pattern Day Trader account does not meet the designated requirements, the account will be restricted and unable to trade any new positions (account can still close existing positions).
If the account owner wishes to have the “Pattern Day Trader” designation removed, he/she should request a PDT account reset.