Get a free $EBAY stock for every referral in May.
Start referring


Stake Academy - Day Trading

You may have noticed the trade counter in your Stake App profile page. It quietly tallies all the trades you make during the week. Certain investors face regulatory restrictions on the number of trades they can make over a week. These are known as Pattern Day Trading rules. Let’s dig into the details.


A day trade involves buying and selling the same stock or ETF during the same trading session. Fear not, we have heaps of examples below. There are a few intricacies.

Traders who execute three day trades within a rolling five day period have hit their PDT limit. Should traders make a 4th day trade, they risk a 90-day ban.

To keep our customers safe and on the right side of the rules, we’ve built a Day Trade Counter into Stake. This will keep track of all your day trades and notify you when you are on your third day trade in a rolling five trading day period.  Find it in under ‘Day Trade Settings; in your profile page. You’ll always have the right (and given the choice) to make a 4th day trade, but will be warned of the impact this may have.

To be clear, the Financial Industry Regulatory Authority (FINRA) institutes such rules rather than Stake.

Stake Black

Stake Black makes trading on unsettled funds a possibility for those with more than US$25k in their accounts. For those who maintain a balance above US$25k, unlimited day trades are possible on the platform without PDT restrictions.

Day Trading Examples

There are a heap of “what ifs”, so here are a few examples of what counts as a single or multiple trades:

One Day Trade

Example 1: Buy, Sell

You start with 0 shares of AAPL

Buy 1 AAPL 

Sell 1 AAPL

This constitutes one day trade, because you bought then sold AAPL on the same trading day.

Day trade = Buy 1 AAPL, Sell 1 AAPL


Example 2. Sell, Buy, Sell

Example 2:

You already own 100 shares of stock AAPL.

Sell 20 shares AAPL

Buy 10 shares AAPL

Sell 10 shares AAPL

This constitutes one day trade, since you already owned positions the first sell doesn’t count towards a day trade.

Day trade = Buy 10 AAPL, Sell 10 AAPL.


Example 3. Buy, Buy, Buy, Sell, Sell, Sell

You currently hold 0 shares of stock AAPL

Buy 5 AAPL

Buy 3 AAPL

Buy 2 AAPL

Sell 1 AAPL

Sell 4  AAPL

Sell 2 AAPL

This is one day trade because there is only one change in direction between buys and sells

Day trade = Buy 5 AAPL, Buy 3 AAPL, Buy 2 AAPL, Sell 1 AAPL


More than one day trade

Example 1. One stock

You currently hold 0 shares of stock AAPL

Buy 100 AAPL

Sell 20 AAPL

Sell 40 AAPL

Buy 10 AAPL

Sell 10 AAPL

These are two-day trades as there were two changes in direction.

Day trade 1 = Buy 100 AAPL, Sell 20 AAPL

Day trade 2 = Buy 10 AAPL, Sell 10 AAPL


Example 2. Two stocks

You currently hold 0 shares of stock AAPL and NFLX

Buy 100 AAPL

Buy 20 NFLX

Sell 40 AAPL

Sell 10 AAPL

Sell 10 NFLX

This constitutes two day trades there were two changes in direction.

Day trade 1 = Buy 100 AAPL, Sell 40 AAPL

Day trade 2 = Buy 20 NFLX, Sell 10 NFLX


Example 3. Across multiple days

You currently hold 0 shares of stock AAPL and NFLX 

Buy 100 AAPL (Monday)

Sell 40 AAPL (Monday)

Sell 10 AAPL (Tuesday)

Buy 20 NFLX (Wednesday)

Sell 10 NFLX (Wednesday)


This constitutes two day trades as a change in direction within the same day, occurred twice within a 5 trading day period.  5 trade day period = Monday – Friday.

Day trade 1 (Monday) = Buy 100 AAPL, Sell 40 AAPL

Day trade 2 (Wednesday) = Buy 20 NFLX, Sell 10 NFLX

Sign up to Stake

Don’t have Stake?

Get $10 when you fund Stake AUS, a free US stock when you fund Stake Wall St. Do both, get both!

Stake logo
App Store logoGoogle Play logo

Stakeshop Pty Ltd is registered as an overseas company in New Zealand (NZBN: 9429047452152), and is registered as a Financial Service Provider under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (No. FSP774414). We hold a full licence issued by the Financial Markets Authority to provide a financial advice service under the Financial Markets Conduct Act 2013. However, the content on this website has not been prepared to take into account any of your individual objectives, financial situation or needs. To the extent you require further information about the relevant New Zealand legislation that may apply, or require specific advice, please contact your legal and/or financial adviser (as appropriate). The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Terms & Conditions, Privacy Policy, Financial Advice Disclosure and Disclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake is a registered trademark under class 36 (New Zealand).

Copyright © 2023 Stake. All rights reserved.