Feeling a little anxious about those day trade limits on Webull? You're not alone! The Pattern Day Trader (PDT) rule can be a real head-scratcher for many traders, especially when you're actively buying and selling. But don't worry, Webull provides ways to keep track of your day trades so you can stay compliant and avoid any unwelcome restrictions.
This comprehensive guide will walk you through exactly how to see how many day trades you have left on Webull, along with a deep dive into the PDT rule itself and how to manage your trading activity. Ready to take control of your day trading? Let's dive in!
Step 1: Understanding the "Why": The Pattern Day Trader (PDT) Rule
Before we jump into how to check your day trades, it's crucial to understand why this matters. The Pattern Day Trader (PDT) rule is a regulation enforced by the Financial Industry Regulatory Authority (FINRA) in the United States. It's designed to protect investors, particularly those with smaller accounts, from excessive risk associated with frequent day trading.
What constitutes a day trade?
A day trade occurs when you buy and sell (or sell and buy) the same security within the same trading day in a margin account. This includes activity during pre-market and after-hours trading that settles on the same day.
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Example 1: You buy 100 shares of XYZ stock at 10:00 AM and sell those same 100 shares at 2:00 PM on the same day. That's one day trade.
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Example 2: You short sell 50 shares of ABC stock at 11:00 AM and buy back those same 50 shares at 3:00 PM on the same day. That's also one day trade.
When does the PDT rule kick in?
You are classified as a Pattern Day Trader if you execute four or more day trades within any rolling five business days in a margin account. This is the key. It's a rolling five-day period, meaning the five-day window constantly shifts.
The $25,000 Threshold:
If you are flagged as a PDT, you are required to maintain a minimum of $25,000 in equity in your margin account at the close of business on any day you day trade. If your account falls below this threshold, you will face restrictions.
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Important Note: This $25,000 includes a combination of cash and eligible securities. However, crypto and futures positions typically do not count towards this equity requirement on Webull.
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| How To See How Many Day Trades You Have Left On Webull |
Step 2: Locating Your Day Trade Counter on Webull
Webull aims to make it relatively easy to monitor your day trade count. While the exact interface might have minor variations based on app updates, the general location remains consistent.
Tip: Highlight what feels important.
Sub-heading: On the Webull Mobile App (Most Common)
Most Webull users primarily trade on the mobile app. Here's how to find your day trade count:
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Open the Webull App: Launch the Webull application on your smartphone or tablet.
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Navigate to the "Account" Tab: Look for the "Account" icon, usually located at the bottom right of your screen (it often looks like a person's silhouette). Tap on it.
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Find "Day Trades Left" or "Day Trade Count": Within the "Account" section, you'll need to look for a section related to your trading limits or account details. It's often prominently displayed near your buying power and account value.
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You might see a label like "Day Trades Left" or "Day Trade Count".
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Webull typically displays your day trades in a format that indicates remaining day trades for today, tomorrow, and subsequent days within the rolling five-day period. For example, it might show something like "(3, 3, 2, 1, 0)" where '3' means three day trades available, and '0' means none.
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Understand the Numbers: The numbers displayed represent your available day trades for the current day (T), the next business day (T+1), and so on, up to T+4. As you execute a day trade, the corresponding number for that day will decrease.
Sub-heading: On the Webull Desktop Platform
If you prefer trading on your computer, the Webull desktop platform also provides this information:
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Launch Webull Desktop: Open the Webull desktop application on your computer.
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Access the "Account" Section: Look for an "Account" or "Portfolio" tab in the main navigation or a dedicated panel.
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Locate Day Trade Information: Similar to the mobile app, within your account summary or a specific "Trading" section, you'll find details about your day trading status and available trades. It might be under "Trading Limits" or "Account Details."
Step 3: Activating and Understanding "Pattern Day Trade Protection"
Webull offers a helpful feature called "Pattern Day Trade Protection" to assist you in avoiding accidental PDT flags. It's highly recommended to have this enabled.
Sub-heading: How to Enable PDT Protection
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Go to "Account" then "Settings": On the Webull mobile app, navigate to the "Account" tab, then tap on the gear icon (Settings) in the top right corner.
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Find "Investing" or "Trading Settings": Look for a section related to "Investing" or "Day Trade Settings" within the settings menu.
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Toggle "Pattern Day Trade Protection" On: You should see an option to enable or disable this feature. Make sure it's toggled ON.
Sub-heading: How PDT Protection Works
When enabled, Webull's PDT Protection will:
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Alert You: Provide in-app notifications when you are approaching or at risk of being flagged as a Pattern Day Trader.
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Offer Options: On your 2nd and 3rd day trades within the rolling five-day period, it might present options like switching to a cash account (if applicable) or reminding you about the $25,000 equity requirement.
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Require Acknowledgment: Before you execute your 4th day trade, you might be required to explicitly acknowledge that you understand the implications of becoming a Pattern Day Trader.
Tip: Don’t skim — absorb.
Step 4: Understanding the Implications of Being a Pattern Day Trader
While not inherently "bad," being flagged as a Pattern Day Trader comes with specific rules and potential restrictions.
Sub-heading: If Your Account is Below $25,000 Equity
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Trading Restrictions: If you are flagged as a PDT and your account equity falls below $25,000 at the close of business, your account will be restricted to closing-only transactions. This means you can sell positions you already hold but cannot open any new positions until your account equity is restored above $25,000 or your PDT status is reset (more on resets below). This restriction can last for 90 days if not remedied.
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Equity Maintenance Call (EM Call): You may receive an Equity Maintenance (EM) call, indicating that your account equity is insufficient to maintain your PDT status.
Sub-heading: If Your Account is Above $25,000 Equity
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Increased Buying Power: The "upside" of being a PDT with over $25,000 in your account is that you gain access to significantly higher day trading buying power, often up to 4 times your maintenance margin excess (whereas non-PDTs typically get 2x). This allows for larger intraday positions.
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Continued Day Trading: As long as you maintain the $25,000 equity, you can continue to day trade without restriction on the number of day trades. However, you are still subject to other margin rules and risks.
Step 5: Strategies to Manage Your Day Trades and Avoid Restrictions
Understanding the rules is one thing; effectively managing your trading is another. Here are some key strategies:
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Sub-heading: Monitor Your Day Trade Count Diligently
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Check Frequently: Make it a habit to check your day trade counter on Webull, especially if you're engaging in multiple trades.
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Plan Your Trades: Before entering a trade, consider whether you intend to close it on the same day. If so, factor it into your day trade count.
Sub-heading: Consider a Cash Account (Under $25,000)
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No PDT Rule in Cash Accounts: The PDT rule does not apply to cash accounts. In a cash account, you can make as many day trades as you want, provided you have settled funds available.
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Settlement Times: The caveat with cash accounts is that you must wait for your funds to settle after a sale before you can use them again for a new purchase. For most stocks and ETFs, this is a T+2 settlement (trade date plus two business days). This means if you sell stock on Monday, the funds might not be available until Wednesday. Webull offers some instant settlement features for certain transactions, but it's crucial to understand the standard settlement times.
QuickTip: Scan for summary-style sentences.
Sub-heading: Utilizing the One-Time PDT Reset
If you accidentally get flagged as a Pattern Day Trader and have less than $25,000 in your margin account, Webull typically offers a one-time PDT reset.
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Eligibility: This is usually a one-time privilege for the lifetime of your account.
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How to Request: You can typically request a PDT reset directly through the Webull app or by contacting Webull customer support. Look for an option under your account settings related to "Day Trade Status" or "PDT Reset."
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Timing: Be aware that reset requests might have specific cut-off times for same-day processing.
Sub-heading: Adjusting Your Trading Strategy
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Swing Trading: Instead of day trading, consider swing trading, where you hold positions for more than one day. This completely bypasses the day trade rule.
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Position Sizing: If you're close to your day trade limit, consider whether the potential profit from a day trade is worth the risk of a PDT flag.
Step 6: What to Do if You Get Flagged (and are Under $25k)
It happens to the best of us! If you find yourself flagged as a Pattern Day Trader with less than $25,000 in your margin account, here's what to do:
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Stop Day Trading Immediately: Do not execute any more day trades. Any further day trades while under an EM call will lead to stricter restrictions (closing-only).
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Check Your Equity: Verify your account equity to see how far you are from the $25,000 threshold.
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Deposit Funds: The quickest way to remove the restriction is to deposit enough funds to bring your account equity above $25,000 at the close of business.
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Request PDT Reset (If Eligible): If you haven't used your one-time reset, this is the time to utilize it. Follow the steps in the Webull app or contact support.
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Switch to a Cash Account (Considered as an Option): If you consistently struggle with the PDT rule and don't have $25,000, switching to a cash account might be a viable long-term solution for your trading style, even with the settlement period considerations.
Related FAQ Questions
Here are 10 frequently asked questions about day trading on Webull, starting with "How to":
How to avoid pattern day trader status on Webull?
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Quick Answer: Maintain over $25,000 in your margin account equity, or limit your day trades to no more than three in a rolling five-business-day period. You can also trade in a cash account, which is not subject to PDT rules.
How to request a PDT reset on Webull?
QuickTip: Skim slowly, read deeply.
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Quick Answer: Typically, you can find the option to request a PDT reset within the "Account" section of your Webull app, under "Day Trade Settings" or by contacting Webull customer service. Remember, it's usually a one-time option.
How to know if my account is a cash or margin account on Webull?
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Quick Answer: In the Webull app, go to your "Account" tab. Your account type (Cash or Margin) is usually displayed prominently near your account balance and details.
How to count a day trade on Webull?
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Quick Answer: A day trade is counted when you open and close the same security position (buy then sell, or sell then buy) within the same trading day in a margin account. Multiple partial fills of the same order still count as one day trade for that specific opening/closing action.
How to deal with an Equity Maintenance (EM) call on Webull?
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Quick Answer: To resolve an EM call, you must deposit funds to bring your account equity above $25,000 by the end of the trading day specified in the call, or utilize your one-time PDT reset if eligible.
How to trade if my Webull account is restricted due to PDT?
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Quick Answer: If restricted, your account will be "closing-only," meaning you can sell existing positions but cannot open new ones. The restriction is lifted once you resolve the PDT flag (e.g., by depositing funds or using a reset).
How to tell the difference between a cash account and margin account day trading rules?
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Quick Answer: Margin accounts are subject to the PDT rule (3 day trades in 5 rolling days if under $25k equity), while cash accounts are not. However, cash accounts require funds to settle before they can be reused for new trades.
How to check my settlement funds in a Webull cash account?
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Quick Answer: In your Webull cash account, look for "Available Cash" or "Settled Cash" in your account details. This indicates the funds you can immediately use for new purchases without violating good faith rules.
How to avoid getting locked out of trading on Webull?
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Quick Answer: Diligently monitor your day trade count, ensure your margin account equity stays above $25,000 if you plan to day trade frequently, and enable Webull's Pattern Day Trade Protection feature.
How to understand the rolling five-day period for PDT on Webull?
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Quick Answer: The rolling five-day period means Webull looks at your trading activity over the past five business days, including the current day. If you make your 4th day trade in this period, you become a PDT. Each new business day, the oldest day's trades fall off the five-day lookback.
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