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Tastytrade Day Trading (PDT) Rules (2025)
Pattern day trading rules at Tastytrade. Day trader PDT requirements and limits for
margin and cash accounts above/below $25,000 balance.
Can you day trade on Tastytrade?
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PDT at Tastytrade
Tastytrade specializes in options and futures trading, which are often traded on a short-term basis. But what about day trading them? Yes, you can day trade at Tastytrade, but you need to know a few important rules first.
America’s Pattern Day-Trading Rule
Tastytrade operates in the United States and must comply with the pattern day-trading rule. This rule requires any account classified as a PDT account to hold at least $25,000 in equity. Here's what defines a PDT account:
- The account’s day trades account for at least 6% of total trading activity.
- The account makes 3 or more trades of securities within five market days. Securities include bonds, stocks, equity and index options, closed-end funds, and ETFs. Note that futures are not considered securities, and options on futures don't count towards the 3-trade limit.
- The account is a margin account. Cash accounts do not qualify as pattern day-trading accounts.
If your account meets all three criteria, it is considered a PDT account. If it only meets two, it does not qualify as a PDT account, and you don’t need to maintain the $25,000 equity.
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Avoiding PDT Classification
An important note for Tastytrade traders: America’s PDT rule does not apply to trades of futures contracts or options on futures. Many traders at Tastytrade focus on these, making it a primary way to avoid PDT classification.
Trading equity and index options do count towards the "3 or more trades of securities." If you plan to trade options, keep your activity below this threshold, or use a cash account to automatically avoid the PDT flag. Note that not all option strategies are available in a cash account—only buying calls and puts and selling covered calls and cash-secured puts.
Alternatively, keep your day trades below 6% of total trading activity.
Day Trading with TastyTrade’s Software
Tastytrade recently updated its desktop platform to include features like bracket orders, which are popular with day traders. With bracket orders, you can set stop-loss and take-profit orders alongside your entry order, which must be a limit or stop limit order.
To use a bracket order, go to a security’s profile by clicking on a ticker symbol in your watchlist or typing it at the top of the platform.
Then, click on a bid or ask number to open the trade ticket. Choose limit or stop limit as the order type, then click the gray BRACKET button to fill out the bracket order form, which includes several time-in-force options, like day orders.
Note: Tastytrade’s mobile app and browser platforms do not support the bracket order feature.
Better Broker For Traders
For active traders looking for a better option, Charles Schwab is a
great alternative to Tastytrade.
It offers virtual trading, better trading platform,
and a wider range of features and services.
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Charles Schwab Referral
Updated on 6/17/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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