The “Pattern Day Trading” (PDT) rule is only applicable to the US market. The Singapore market does not follow any PDT rule.
'Pattern Day Trading' (PDT) rule states that the customer should not execute four or more "day trades" within a rolling 5-business days period. FINRA rules define a “pattern day trader” as any customer who executes four or more 'day trades' within a rolling five business days period, provided that the number of day trades represents more than six per cent of the customer’s total trades in the account for that same five business day period.
A day trade is considered as the opening and closing of the same position within the same day. If three day trades have been executed within a rolling five business day period,by default, the fourth pattern day trade will be blocked to avoid PDT violation.When this happens, you will not be able to execute sell order on a security bought on the same trading day.
Day trade count are on a cumulative basis. Think of it as a counter that keeps getting updated based on the number of day trades made within 5 rolling business days.
Example:You make your first day trade on Monday. Your "counter" is 1. You make your second and third day trades on Thursday. Your "counter" becomes 3. Since the fourth day trade is blocked by default, you won't be able to make another day trade on Friday.
The following Monday, your "counter" is reset to 2 (the first day trade made the previous Monday is no longer counted, as it is now outside the rolling 5-business days period). As such, you can make one more day trade on Monday before the PDT restriction is triggered. If you try to make 2 day trades, the sell order of the last trade will not be executed.
Day trade count includes pending orders that you have placed. For example, if you’ve purchased a stock and then set a sell limit order on that same stock on the same day, that order will count as a day trade in our system, regardless of whether or not it gets executed. However, if the trade is not executed on the same day, it won’t actually count as a day trade for regulatory purposes, and your day trade count will be reset on the next day.
Pattern Day Trader (PDT) is a FINRA requirement and hence, all brokers registered with FINRA need to abide by this. The rules also require the firm to designate you as a pattern day trader if it knows orhas a reasonable basis to believethat you will engage in pattern day trading. For example, if the firm provided day-trading training to you before opening your account, it could designate you as a pattern day trader.