Effective June 4, 2026, the $25,000 minimum equity requirement for pattern day traders has been eliminated. The new minimum threshold for accessing Intraday Margin Buying Power in a margin account is $2,000 in Margin Equity.

Why is there a minimum equity requirement for intraday trading?

The $2,000 minimum equity threshold is a longstanding regulatory baseline for margin account eligibility. A trader who opens and closes positions within the same day may generate significant financial exposure without holding any securities at the end of the day. The minimum equity requirement ensures that funds are present in the account where the trading and risk is occurring.

What happens if my Margin Equity falls below $2,000?

If your Margin Equity drops below $2,000, your Intraday Margin Buying Power is automatically limited to 1× Margin Excess. If your account falls below $2,000 while carrying a debit balance or a short position, a margin call will be issued. You can resolve it by depositing cash or eligible securities, or by closing open positions.

Can I use a cross-guarantee to meet the minimum equity requirement?

No. Cross-guarantees between accounts are not permitted to satisfy any margin requirements. Each account must meet the minimum equity requirement independently using only the financial resources available in that account.

Why do funds need to be in my brokerage account?

Funds must be in your TradeStation margin account because that is where the trading and risk is occurring. These funds are required to support the risks associated with intraday trading activity.

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