Aggregation (Applies to PDT accounts only)
Aggregation status means the total cost of ALL day trades in one day are added together to determine that day’s day trade requirement, and cannot exceed your starting day trade buying power.
Note: A Pattern Day Trader (PDT) account, with a past due DT call, may use 2X stock BP for overnight trades, but not for day trades.
A PDT account has starting day trading buying power of $3,000. Due to having a prior unmet DT call the account is in aggregation.
Trade 1 (9:30 AM)- BTO 50 XXX April 60 puts $0.50 ($2,500)
Trade 2 (10:00 AM)- STC 50 XXX April 60 puts $0.50 ($2,500)
Trade 3 (11:00 AM)- BTO 25 ZZZ Jan 55 calls $1.00 ($2,500)
Trade 4 (12:30 PM)- STC 25 ZZZ Jan 55 calls $1.10 ($2,750)
In this case both day trades are added together to calculate the day trade charge. The total day trade charge is $5,000, and a day trading call will be issued for $2,000.
A PDT account has starting day trading buying power of $6,000. Due to having a prior unmet, past due, DT call the account is in 1X aggregation.
Trade 1 (11:00 AM)- Buy 1000 ZZZ stock $11.50 ($11,500)
Trade 2 (11:30 AM)- Sell 1000 ZZZ stock $11.50 ($11,500)
In this case, due to aggregation, the day trade charge takes 100% of the requirement of the shares purchased, and a day trading margin call will be issued for $5,500.
Note: If the shares had been held overnight no DT call would have generated, and that $6,000 worth of the stock could have been day traded without generating a DT call.