PDT Rule Hack

There are many ways to get around the pattern day trader rule also known as the “PDT Rule” from trading crypto to futures and using offshore brokers with high fees to trading at prop firms and more. But the easiest way one can get around the pdt rule is by trading in a cash account. The PDT rule only applies to margin accounts or instant settlement accounts were your funds settle instantly after you close a trade so you can enter another right away if you chose to do so.

However, with a cash account your funds do not settle instantly rather they take 2 days so the day you traded counts as day 1 the next day is day 2 and on the following day your cash is settled and ready for you to use again. In theory you can day trade every day with a cash account as long as you are trading settled cash.

Example of trading daily in a cash account. Let’s say you have a $5000 cash account you could in theory trade $1000 every single day or you could trade $2500 Monday and $2500 Tuesday now on Wednesday the $2500 you traded on Monday has settled and you can trade that $2500 on wed! This is usually the easiest way to get around PDT and still be able to trade daily and it is a very overlooked strategy.

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