To avoid the Pattern Day Trading (PDT) restriction, you can follow these strategies:12
1. Use a Cash Account: Open and maintain a cash account instead of a margin account. Cash accounts require settled funds, which means you can only use the funds that have been settled, limiting your trading activity.
2. Divide Capital into Multiple Margin Accounts: Open multiple margin accounts and divide your capital among them. This way, you can day trade with different accounts without crossing the PDT limit in any one account.1
3. Open an Offshore Trading Account: Open an offshore trading account to bypass the PDT rule. Offshore accounts are not subject to the same regulations as domestic accounts, allowing you to day trade without restrictions.
4. Buy and Swing Trade: Consider a strategy that involves buying and holding positions for several days or weeks, known as swing trading. This approach can help you avoid the PDT rule, as it doesn't require frequent day trading.2
Remember, it's essential to understand the Pattern Day Trading rule and the consequences it can have on your trading activities.1
Source:
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What's the Pattern Day Trading Rule? And How to Avoid...
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