I found that this is related to " Pattern Day Trader (PDT) Protection".
Alpaca Trading platform monitors the number of day trades for the account for the past 5 business days and rejects a newly submitted orders on exit of a position if it could potentially result in the account being flagged for PDT. This protection triggers only when the previous day’s closing account equity is less than $25,000 at the time of order submission.
It’s a legal restriction that all brokers have to check for, though some seem to implement it differently. IB will still let you close positions if you’ve been flagged for PDT, even if your account balance is below $25k. If you’re funded above that, it’s a non-issue regardless.
Hello, I am receiving this error when trying to sell a stock. It still lets me buy stocks over the API but not sell any and getting the error APIError: trade denied due to pattern day trading protection. Could someone please take a look at my account and confirm? Thank you