![]() Program banks pay interest on your swept cash, minus any fees paid to Robinhood. When enrolled, interest is earned on uninvested cash swept from your brokerage account to program banks. The Brokerage Cash Sweep Program is an added feature to your Robinhood Financial LLC brokerage account. Also, be aware of the risks listed in the Day Trading Risk Disclosure Statement. Supporting documentation for any claims, if applicable, will be furnished upon request. ![]() To learn more about the risks associated with options, read the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Investors should consider their investment objectives and risks carefully before investing. Robinhood Financial does not guarantee favorable investment outcomes and there is always the potential of losing money when you invest in securities, or other financial products. Certain complex options strategies carry additional risk. ![]() Options trading entails significant risk and is not appropriate for all investors. These disclosures contain information on Robinhood Financial’s lending policies, interest charges, and the risks associated with margin accounts. For more information, review Robinhood Financial’s Margin Disclosure Statement, Margin Agreement and FINRA Investor Information. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation. Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. In addition to allowing day trading, these options will also allow you to resume participation in the Sweep and Stock Lending programs, which are paused when flagged for PDT in a margin account.Īll investments involve risks, including the loss of principal. Check out the brokerage accounts article to understand the differences between cash accounts and margin accounts. Switch to a cash account, since cash accounts aren’t subject to PDT regulation.Use your one-time courtesy PDT flag removal, if it’s available.If you’re unable to maintain a portfolio value above $25,000, you can: This means you can close positions you already own, but can't open any positions. To continue day trading in a margin account while flagged for PDT, you’ll need to end the trading day with a portfolio value above $25,000, otherwise continuing to day trade may lead to a position closing only restriction. This means you can’t place any day trades until you bring your portfolio value above $25,000 or switch to a cash account. If you place your 4th day trade in the 5 trading day window, your brokerage account will be flagged for pattern day trading. To verify in the app whether you’re restricted from day trading or not on any given day, check your Day trade counter. ![]() Your portfolio value may fluctuate above $25,000 at some point during the trading day, but we only take into account the closing balance of the previous trading day. However, positions are valued based on their 4 PM ET closing price. This includes any extended hours trading and transfer activity up until 8 PM ET. All trading activity is included in calculating your prior day’s closing equity value. Your portfolio value is the sum of your cash, stocks, and options, and doesn’t include crypto positions.įor the purposes of PDT, your portfolio value excludes any crypto positions or available margin. If your account is flagged for PDT, you’re required to have a portfolio value of at least $25,000 to continue day trading. This rule only applies to margin accounts and IRA limited margin accounts. ![]() Your account will be flagged for pattern day trading if you make 4 or more day trades within 5 trading days, and the number of day trades represents more than 6% of your total trades in that same 5 trading day period. ![]()
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