A Pattern Day Trader is an individual who holds a margin account and manages 4 or more “day trades” within a 5 business day period. A Pattern Day Trader can either have an IBKR Lite or an IBKR Pro account. A day trade refers to a position in a US or non-US security (Stocks, Stock and Index Options, Warrants, T-Bills, Bonds, or Single Stock Futures) that is increased (“opened”) and afterwards decreased (“closed”) within the same trading session in a margin account (an irregularity is made if a long position was held overnight and sold the following day prior to any new sale or if a short position was held overnight and purchased the following day prior to any new sale of the same security).
If your margin account is over $25,000 then you are not compromised by being a Pattern Day Trader, but if your are below $25,000 then you are limited to 3 day trades in a rolling day period.
For further information, see How do I know if I have been flagged as a Pattern Day Trader.
If you have been flagged as a Pattern Day Trader, you may be entitled to reset your Pattern Day Trade Status.
You can find an Overview of Pattern Day Trading (“PDT”) Rules on the IBKR website.
A cash account is not subject to the pattern Day Trader rules. For more information see: What are the day trading limits in a cash account?