![Crypto Terms Glossary: What is Pattern Day Trading? Crypto Terms Glossary: What is Pattern Day Trading?](/img/82/1046/what-is-pattern-day-trading-sm.webp)
A pattern day trader (PDT) is a regulatory classification for a trader who executes more than four margin trades per day during five consecutive business days. The PDT designation places specific limits (to limit excessive risk and detrimental habit-based trading) on trading for a trader and can result in an exchange banning a trader for up to 90 days in order to remain compliant with NYSE (New York Stock Exchange) regulations.