|
Tastytrade Day Trading (PDT) Rule (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?
|
PDT at Tastytrade
Tastytrade focuses on futures and options trading, and these types of trades are often done for short periods. But what if you want to day trade? You can day trade at Tastytrade, but there are some important rules you should know.
America’s Pattern Day-Trading Rule
Tastytrade is a U.S. company, so it must follow the country’s pattern day trading rule. This rule says that any account labeled as a pattern day trader (PDT) must have at least $25,000 in equity. The rule is straightforward about what counts as a PDT account:
An account where day trades are at least 6% of all trades.
An account that makes 3 or more trades of securities within five trading days. Securities include things like stocks, bonds, equity and index options, closed-end funds, and ETFs. Futures do not count as securities. Also, options on futures don’t count toward the 3-trade limit.
An account that uses margin. Cash accounts are not considered pattern day trading accounts.
Your account must meet all three of these points to be a PDT account. If it only meets two, it is not a PDT account and the $25,000 rule does not apply.
Free Tastytrade Account
Visit Tastytrade Website
Avoiding PDT Classification
The first thing to know is that the U.S. PDT rule does not cover futures trades or options on futures. Since many Tastytrade users trade futures and options on futures, this is the easiest way to avoid PDT rules.
Trades involving equity and index options do count toward the “3 or more trades of securities” rule. So, if you want to trade options, keep your trades under this level. Another way is to use a cash account for your options trades. This would automatically avoid the PDT label.
However, not all option trades are allowed in a cash account. Most complex option spreads need margin. In a cash account, you can buy calls and puts, sell covered calls, and sell cash-secured puts. That’s all.
You can also make sure your day trades are less than 6% of your total trading activity.
Day Trading with TastyTrade’s Software
Tastytrade has updated its desktop trading platform. The new version now includes bracket orders, which are popular with day traders. Bracket orders let you set a stop-loss and a take-profit at the same time as your entry order. You need to use either a limit order or a stop limit order to use this feature.
To place a bracket order, start by opening the trade ticket. Go to a security’s profile by clicking its symbol in your watchlist or entering the symbol at the top of the platform.
Then click a bid or ask price to create a trade ticket. Choose limit or stop limit as the order type. Then you’ll see a gray BRACKET button. Click this to open the bracket order form. You’ll see several time-in-force options, including day orders.
Tastytrade’s mobile app and web browser platforms do not have 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.
Charles Schwab Promotion
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.
|