The Intraday Margin Rule is a new regulatory requirement that replaces the old Pattern Day Trader (PDT) rules. Instead of focusing on how many day trades are completed, the new rule focuses on the amount of real-time risk in a margin account.
Key Terms
- Intraday Margin Level (IML): A margin account’s IML is based on the account’s excess equity at the close of the previous business day. Up to 4X this amount may be used at any given time during the trading day.
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Excess Equity: Excess equity is the extra value in your account above its minimum equity requirement. When positive, it provides a cushion to avoid possible margin calls and helps determine your available margin buying power.
- If excess equity becomes negative, your account is below its minimum equity requirement and may be subject to a margin call and/or an Intraday Margin Deficit (IMD).
- IML-Reducing Transactions: Any activity that lowers excess equity is considered an IML-reducing transaction. This includes long opening trades and withdrawal of funds.
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Intraday Margin Deficit (IMD): If a margin account exceeds its allowed IML, an Intraday Margin Deficit (IMD) will be issued. The deficit must be covered to avoid possible account restrictions, including a potential 90-day closing-only restriction.
- IMDs are due within 5 business days of the trade violation date.
- IMDs can be covered via deposit and/or liquidation (if eligible).
To learn more about Intraday margin Deficits (IMDs), review the following support article.
Note: All PDT changes are taking place on 06/04/2026.