Account Restrictions

Account Restrictions

Day Trade Restrictions

You will be restricted from making day trades for 90 days in the instances listed below. However, if you feel you must execute a sell order, you can override these restrictions by calling our trade desk and speaking with a broker. Please exercise discretion when overriding these restrictions because doing so will result in a non-negotiable 90 day restriction from buying stock.

Pattern Day Trader (less than $25,000)

If you’re marked as a pattern day trader and your portfolio value is less than the regulatory day trading minimum of $25,000, you’ll be restricted from day trading for 90 days. You’ll be able to day trade if you get your portfolio value above $25,000 (instant deposits don’t count toward this amount), but your restriction will continue if your portfolio value drops below $25,000. You can learn more about the implications of the pattern day trader flag here.

Active Day Trade Call

You can’t day trade while you’re in a day trade call. You can resolve your day trade call by depositing funds. You can learn more about day trade calls here. You won’t be able to day trade until the market close after you cover your day trade call. This means that if you cover your day trade call on Monday after market close, you won’t be able to day trade until Wednesday’s market day.

Uncovered Day Trade Call

If you don’t cover your day trade call within the 5 day window, you’ll be restricted from day trading for 90 days. There is no way to remove this restriction besides waiting 90 days.

Sell Only Restrictions

Margin Call

When you’re in a margin call you won’t be able to buy stock. You’ll need deposit funds or sell stock to cover your margin call, and you’ll be able to trade the next trading day. If you don’t cover your margin call, a broker from Robinhood may sell a portion of your portfolio to cover your call and you’ll be able to buy again the next trading day. You can learn more about margin calls here.

Day Trading while restricted

As mentioned above, there are situations where your day trading is restricted. If you execute a day trade while your day trading is restricted, you won’t be able to buy stock for 90 days.

Other

Restrictions may be placed on your account for other reasons. Some of these reasons include:

  • Transfer reversals
  • Incorrect/outdated information on file
  • Fraud inquiry
  • Account Levy

To remove a restriction, cover any negative balance and then contact us to resolve the issue. You can find more information about transfer reversals here

If you have any questions, please contact us at support@robinhood.com.

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