Why can’t you day trade on Robinhood

Are you not able to day trade on Robinhood? Is it even possible?

Does Robinhood blocked or restricted your account for making day trade?

What is exactly day trading on Robinhood, what are its rules, limits, charges, etc.?

If these are your queries, you have landed on the right page. In the post, we have explained all you need to know about day trade on Robinhood.

So, let’s begin.

What is day trading Robinhood

When you buy and then sell the same stock or open and close the same options contract(s) within a single trading day, you’ve made a day trade.

In simple words, buying and selling the same security or stock on the same day is called day trade on Robinhood.

Let’s say you place a day trade on Monday, December 13. Within the market hours of this day, you both open and close your position, so this will be referred to as a day trade.

And day trading on Robinhood simply means you are using Robinhood’s platform to day trade. Robinhood is the USA’s largest trading app known for pioneering commission-free stocks, exchange-traded funds, and cryptocurrencies via a mobile app introduced in March 2015.

Below are  some examples of what is and what isn’t a day trade on Robinhood:

One buy, one sell

You start with 0 shares of ABC stock.

  • Buy 1 ABC
  • Sell 1 ABC

This is one day trade because you bought and sold ABC in the same trading day.

Day Trade: (Buy 1 ABC, Sell 1 ABC).

Leading sell

You start with 10 shares of ABC stock.

  • Sell 10 ABC
  • Buy 5 ABC
  • Sell 5 ABC

This is one day trade.

Since your first transaction for ABC was selling ABC that you already owned from a previous day, it doesn’t count toward your day trades.

Day Trade: (Buy 5 ABC, Sell 5 ABC).

Non-leading sell

You start with 10 shares of ABC stock.

  • Buy 1 ABC
  • Sell 10 ABC

This is one day trade. Though you already own 10 shares of ABC, you opened a new position in ABC with the initial purchase.

Day Trade: (Buy 1 ABC, Sell 10 ABC).

Multiple buys and sells

You start with 0 shares of ABC stock.

  • Buy 1 ABC
  • Buy 2 ABC
  • Buy 7 ABC
  • Sell 1 ABC
  • Sell 5 ABC
  • Sell 4 ABC

This is one day trade because there is only one change in direction between buys and sells.

Day Trade: (Buy 1 ABC, Buy 2 ABC, Buy 7 ABC, Sell 1 ABC)

Robinhood logo


Can you day trade on Robinhood

Yes, you can day trade on Robinhood. However, it is limited to no more than 3-day trades in a 5 trading day period, unless you have at least $25,000 of portfolio value (excluding cryptocurrency positions) in your Instant or Gold account at the end of the previous day.


How many day trades can you make on Robinhood ; Robinhood day trade limit

Robinhood day trades are limited to no more than 3-day trades in a 5 trading day period unless you have at least $25,000 of portfolio value (excluding cryptocurrency positions) in your Instant or Gold account at the end of the previous day.


Why can’t you day trade on Robinhood

You cannot day trade on Robinhood because you might have violated day trade limits. Your account is marked as a pattern day trade, or your Robinhood account is restricted, or your portfolio value is less than $25,000, or there is a technical issue.

Below, we have listed all the reasons why you are not able to day trade on Robinhood.

1. Your account is marked as PDT (Pattern day trader)

If you have violated the day trade limitation, then your account would have been marked as PDT, and that is the reason why you are not able to day trade on Robinhood.

As per the day trading guidelines, you can only day trades are limited to no more than 3-day trades in a 5 trading day period unless you have at least $25,000 of portfolio value (excluding cryptocurrency positions) in your Instant or Gold account at the end of the previous day.’


2. Your Robinhood account is restricted

Another reason you cannot day trade on Robinhood is that there might be some other restrictions or limitations on your account apart from the PDT violations that block your account for 90 days.

It might be that you haven’t verified your account, or there are some other issues. So make sure your account is fully verified on Robinhood.


3. Your portfolio value is less than $25,000

There are many restrictions around day trading — especially for traders with small accounts. If your portfolio is less than $25k (excluding cryptocurrencies), you will not do more than 3-day trades in a 5 trading day period.


4. Frequent or repeated day trade violations

Frequent and/or repeated day trade violations may cause your account to remain position closing only, even if your portfolio value is over $25,000.

So, make sure you do not volatile the rules and once you are marked as the PDT (pattern day trade), do not day trade till the limit gets refreshed.


5. Technical issue

Lastly, if you haven’t violated any day trading guidelines or limits and even your portfolio is over $25k (excluding cryptocurrencies), and there are no other restrictions on your Robinhood account, then the reason why you aren’t able to trade is that Robinhood servers are having a tough time.

It might be the case that the servers of the Robinhood are down at the moment you are trying to trade, or there can be several other technical issues.

You can check the server status of Robinhood on the downdetector.com website.

If the servers of the Robinhood are having issues, you would like to wait for some time or want to trade the next day.

On the other hand, if the servers are fine, you would like to contact Robinhood support.


What happens if you are marked as a pattern day trader on Robinhood

If you day trade while marked as a pattern day trader and ended the previous trading day below the $25,000 equity requirement, you will be issued a day trade violation and be restricted from purchasing (stocks or options with Robinhood Financial and cryptocurrency with Robinhood Crypto) for 90 days. 

This restriction will be removed if you close the trading day above the $25,000 equity requirement. However, frequent and/or repeated day trade violations may cause your account to remain position closing only, even if your portfolio value is over $25,000.


How to day trade on Robinhood without 25k

You can day trade on Robinhood without 25k, but you will only be able to make 3-day trades in a 5 trading day period unless you have at least $25,000. 

Apart from this, there is no other way to day trade on Robinhood without $25k.


Final words

So, that’s all for now. We hope you were able to understand day trade better on Robinhood after reading this post. For more posts like this, you can visit our Robinhood section or follow a few related posts below.


Further Reading

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(12 Fixes) Why is Robinhood not working

Why is my Robinhood account restricted from purchasing

Why is my withdrawable cash $0 on Robinhood

How to cash out on Robinhood (Time, Fee & more)