Pattern Day Trading (PDT) Disclosures

This Day Trading Risk Disclosure Statement applies to all margin accounts. Cash accounts are not subject to day trading rules.

This Virtex Trades Day Trading Risk Disclosure Statement is being provided to you in the event your margin account becomes, or already is, classified as a Pattern Day-Trader account.
Investors should consider their investment objectives and risks carefully before investing. If a customer engages in day trading, the following rules apply.

Day Trading Rules Definition
Day trading refers to buying then selling or selling short then buying the same security on the same day. Just purchasing a security, without selling it later that same day, would not be considered a day trade.

Customers are considered to be engaging in Pattern Day Trading (PDT) if they execute four or more stock or options day-trades within a five-day period in a margin account (including Limited Purpose Margin Account “LPMA” accounts).

Minimum Account Equity
If the trading activity in your account results in a “Pattern Day-Trader” designation, you must maintain at least $50,000 in the start of day account equity in order to maintain day-trading privileges.

If a call to bring the account equity to the minimum amount is issued for your account, the following will apply:

The account will be prohibited from performing day trades and/or Copy trading; and The account will not be able to close positions opened that day until the minimum account equity ($50,000) is maintained on the account.

If a day trade is performed while a call to bring the account equity to the minimum amount is issued, the account will be restricted to closing transactions only until the account equity satisfies the minimum requirement or 90 days from the last day-trading activity.


Day-Trading Buying Power
If a customer’s account meets or exceeds the minimum Pattern Day Trade equity requirement, it may be eligible to use “Day-Trading Buying Power”. “Day-Trading Buying Power” means the equity in a customer's account at the close of business of the previous day, less any maintenance margin requirement as established by Critical Ideas, Inc. or New York Stock Exchange/FINRA guidelines, multiplied by up to four for equity trades.

These rules apply to Pattern Day Trading: Day-Trading Buying Power can only be used intra-day. ​

Positions purchased using Day-Trading Buying Power must be closed by the close of the market on the same day.
You may still hold positions past market close if their aggregate value does not exceed your regular buying power.
Performing a day trade with funds in excess of your Day-Trading Buying Power will result in a day-trading call which must be met promptly. Until the day-trading call is met, your account will be restricted to Day-Trading/ Copy Trading Buying Power of two times the maintenance margin excess. If the day-trading margin call is not met by the fifth business day, the account will be further restricted to trading only on a cash available basis for 90 days or until the call is met.

Violations of these rules may result in a 90-day restriction being placed on your account. As a consequence of this restriction, you may not be able to place trades online. Please *click here* to read FINRA’s investor guidance, which provides information about day trading margin requirements.