The US regulation has certain restrictions and rules in place to protect individual investors from taking on too much risk. One that applies to trading on unsettled funds is the Pattern Day Trading (PDT) rules.
This only applies to Stake Black customers as they are trading on unsettled funds. The PDT rule only becomes an issue after 1 July, as all Stake Black is currently only available to customers with $30K or more in their accounts.
However, for information purposes, we have presented some details on it here.
The PDT Rule
The basic premise of the PDT rule is that you cannot make more than three day trades (buys and sells of the same share in the same day) in a “rolling” five day period. This 5 day period may not be a calendar week, its any 5 trading days in a row.
This rule does not apply if you have $25,000 or more of equity in your account.
The potential risk of being marked as a Pattern Day Trader is that you may not be able to make day trades for a certain period of time (90 days).
Don’t worry, we’ll be building in protections that prevent you from making that 4th day trade in a 5 day period.