Hi!
I ran into this error:
Error liquidating . trade denied due to pattern day trading protection
when liquidating my position. I have read the forum (and external resources) to understand what it is. Can this restriction be reset on my account?
Thanks!
@iqbal Only 3 day trades in a rolling 5 day window can be executed if an account has under $25,000 in equity. This is an SEC rule. You must have 1) already had 3 day trades in the past 5 days and 2) bought then tried to liquidate in the same day. That would create a 4th day trade which is prohibited.
One subtle thing about the PDT protection is that it counts actual and ‘potential’ day trades. A ‘potential’ day trade is when you open a position then have a limit close order also open. That order could fill the same day and therefore create a day trade. If you have any open limit orders like this, try closing them.
The PDT rule cannot generally be ‘reset’ or turned off for an account. You will need to wait until the next day to close or liquidate a position. However, if this a live account, you can send an email to support@alpaca.markets and they may be able to lift the restriction for a single trade. Include your account number and a brief explanation what you want to do and why you feel the restriction should be lifted.