The Pattern Day Trading Rule Explained
This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.
Investing and trading involve risks, including loss of principal. Schwab does not recommend the use of a day trading strategy.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
When considering a margin loan, you should determine how the use of margin fits your own investment philosophy. Because of the risks involved, it is important that you fully understand the rules and requirements involved in trading securities on margin. Margin trading increases your level of market risk. Your downside is not limited to the collateral value in your margin account. Schwab may initiate the sale of any securities in your account, without contacting you, to meet a margin call. Schwab may increase its "house" maintenance margin requirements at any time and is not required to provide you with advance written notice. You are not entitled to an extension of time on a margin call. For more information about margin, please visit Margin Loans at Schwab.1022-2L2X