The main rule is that in order to engage in pattern day trading you must maintain an equity balance of at least $25,000 in a margin account.
Three months must pass without a day trade for a person so classified to lose the restrictions imposed on them.
Pursuant to NYSE 432, brokerage firms must maintain a daily record of required margin.
Whether you buy or sell to open, when you close the position, you’ve completed a round trip.
Forced sales of securities through a margin call count towards the day trading calculation.
Cash account holders may still engage in certain day trades, as long as the activity does not result in free riding, which is the sale of securities bought with unsettled funds.