pattern day trader

Definition

An SEC designation applying to any individual who buys and sells a particular security in the same trading day at least four times in a five-day period, and for whom same-day trades make up at least 6% of the trader's activity during that period. Pattern day traders are subject to special rules.

Use pattern day trader in a sentence

You may want to try and follow a pattern day trader and see if you can learn anything from his activity.

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Since they were frequently buying and selling the same security within the same day, they were considered to be pattern day traders.

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My brother is subject to special rules for his investing because he frequently acts as a pattern day trader and buys and sells the same stock over and over again.

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pattern day trader