Day Trading

What is a day trade? 

A day trade is when buying and selling (or selling short and buying to cover) the same security on the same trade date. Pre-market and after-hours trading on the same trading day will also be taken into account.

How are day trades counted?

Day trades are counted based on the opening transaction and whether that opening transaction was closed out on the same day. Please note that positions held overnight and closed out the next day prior to opening a new position in the same security, are not considered a day trade.

Examples for Day Trade Count

Scenario 1:
  • Beginning of Monday, you own 0 shares of ABC stock.
    Buy 50 ABC (8:00am-8:00pm)
    Sell 50 ABC (8:00am-8:00pm)
    Number of Day Trades: 1 
Scenario 2:
  • Beginning of Monday, you own 0 shares of ABC stock.
    Buy 50 ABC (8:00am-8:00pm)
    Buy 50 ABC (8:00am-8:00pm)
    Sell 100 ABC (8:00am-8:00pm)
    Number of Day Trades: 1 
Scenario 3:
  • Beginning of Monday, you own 0 shares of ABC stock.
    Buy 50 ABC (8:00am-8:00pm)
    Sell 25 ABC (8:00am-8:00pm)
    Sell 25 ABC (8:00am-8:00pm)
    Number of Day Trades: 1 
Scenario 4:
  • Beginning of Monday, you own 0 shares of ABC stock
    Buy 50 ABC (8:00am-8:00pm)
    Buy 25 ABC (8:00am-8:00pm)
    Sell 50 ABC (8:00am-8:00pm)
    Sell 25 ABC (8:00am-8:00pm)
    Number of Day Trades: 1 

Scenario 5:
  • Beginning of Monday, you own 0 shares of ABC stock.
    Buy 50 ABC (8:00am-8:00pm)
    Sell 50 ABC (8:00am-8:00pm)
    Buy 50 ABC (8:00am-8:00pm)
    Sell 50 ABC (8:00am-8:00pm)
    Number of Day Trades: 2 
Scenario 6:
  • Beginning of Monday, you own 50 shares of ABC stock.
    Sell 50 ABC (8:00am-8:00pm)
    Buy 50 ABC (8:00am-8:00pm)
    Number of Day Trades: 0
Scenario 7:
  • Beginning of Monday, you own 50 shares of ABC stock
    Sell 50 ABC (8:00am-8:00pm)
    Buy 50 ABC (8:00am-8:00pm)
    Sell 50 ABC (8:00am-8:00pm)
    Number of Day Trades: 1
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