Opening an Account

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Funding your Account

Making Withdrawals

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Account Management

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Placing Orders

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Dividends

Trading in the US Markets

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US Tax Forms

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Activity & Confirmations

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Pattern Day Trading

Under these rules, investors will be marked as Pattern Day Traders if they execute more than three day trades in a rolling five trading day period. If marked as a Pattern Day Trader, you may be restricted from making another day trade for 90 days.


To ensure our customers stay safe and on the right side of this regulation, we’ve built a day trade counter into the platform. However, please keep reading to familiarise yourself with the details around PDT, which we’ve outlined below.


Important to Note

  • PDT is a US regulatory (FINRA) rule, not a Stake rule. Therefore, those marked as Pattern Day Traders could face further restrictions beyond the 90 day, day trade restriction, at the discretion of our US broker-dealer, DriveWealth.


Defining a Day Trade

You make a day trade when you buy then sell the same stock/security on the same trading day.

Defining Pattern Day Trading

As mentioned above, traders will be marked as Pattern Day Traders if they execute more than three day trades in a rolling five trading day period. If marked as a Pattern Day Trader, you may be restricted from making another day trade for 90 days.

Exemptions from PDT

Restriction on day trading only apply on account values under $25K, regardless of whether you’re on Stake Black or not. Those with account values over $25k can day trade freely, without restriction.


What if I’m marked as a Pattern Day Trader?
If you are ever marked as a Pattern Day Trader or getting close, you can fund your account above $25K to remove the restrictions. However, you must be able to maintain this account value for the duration of the initial flagged 90 day period.


Stake Day Trade Counter


To keep our customers safe and on the right side of the rules, we’ve built a Day Trade Counter into Stake. This will keep track of all your day trades and notify you when you are on your third day trade in a rolling five trading day period.  You’ll always have the right (and given the choice) to make a 4th day trade, but will be warned of the impact this may have. 



Day Trading Examples


Examples


We get that day trading can be confusing, so here are a few examples.


One Day Trade


Example 1: Buy, Sell


    You start with 0 shares of AAPL


    Buy 1 AAPL

    Sell 1 AAPL


This constitutes one day trade, because you bought then sold AAPL on the same trading day.


Day trade = Buy 1 AAPL, Sell 1 AAPL



Example 2. Sell, Buy, Sell


    You already own 100 shares of stock AAPL.


    Sell 20 shares AAPL

    Buy 10 shares AAPL

    Sell 10 shares AAPL


    This constitutes one day trade, since you already owned positions the first sell

doesn’t count towards a day trade.


Day trade = Buy 10 AAPL, Sell 10 AAPL


Example 3. Buy, Buy, Buy, Sell, Sell, Sell


    You currently hold 0 shares of stock AAPL


    Buy 5 AAPL

    Buy 3 AAPL

    Buy 2 AAPL

    Sell 1 AAPL

    Sell 4  AAPL

    Sell 2 AAPL


This is one day trade because there is only one change in direction between buys and sells


Day trade = Buy 5 AAPL, Buy 3 AAPL, Buy 2 AAPL, Sell 1 AAPL



More Than One Day Trade


Example 1. One stock


    You currently hold 0 shares of stock AAPL


    Buy 100 AAPL

    Sell 20 AAPL

    Sell 40 AAPL

    Buy 10 AAPL

    Sell 10 AAPL


    This is two day trades as there were two changes in direction.


    Day trade 1 = Buy 100 AAPL, Sell 20 AAPL

    Day trade 2 = Buy 10 AAPL, Sell 10 AAPL


Example 2. Two Stocks


You currently hold 0 shares of stock AAPL and NFLX 


    Buy 100 AAPL

    Buy 20 NFLX

    Sell 40 AAPL

Sell 10 AAPL

    Sell 10 NFLX

    

This constitutes two day trades there were two changes in direction.


    Day trade 1 = Buy 100 AAPL, Sell 40 AAPL

    Day trade 2 = Buy 20 NFLX, Sell 10 NFLX


Example iii. Across Multiple Days


    You currently hold 0 shares of stock AAPL and NFLX 


    Buy 100 AAPL (Monday)

    Sell 40 AAPL (Monday)

Sell 10 AAPL (Tuesday)

Buy 20 NFLX (Wednesday)

    Sell 10 NFLX (Wednesday)


This constitutes two day trades as a change in direction within the same day, occurred twice within a 5 trading day period.  5 trade day period = Monday - Friday.


Day trade 1 (Monday) = Buy 100 AAPL, Sell 40 AAPL

Day trade 2 (Wednesday) = Buy 20 NFLX, Sell 10 NFLX


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