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Why do my sell orders get declined?
Why do my sell orders get declined?
Mohamad Daou avatar
Written by Mohamad Daou
Updated over a week ago

A user may be blocked from creating sell orders if he's on track to activating a day trading pattern.

A day trading pattern is when a user makes four (4) day trades within five (5) business days. A day trade is defined as a round-trip pair of trades within the same day (including extended hours). A buy must occur first and then a sell of the same security must come later in the day. The inverse does not make a day trade. Selling short and covering the short on the same day is also considered a day trade. When a day trade pattern is activated, your account will be blocked from trading for 90 days.

Our broker's policy protects the users by preventing them from completing the 4th day trade in a span of 5 business days by declining their sell orders until the pattern is broken, so the account won't be blocked for 90 days.

The temporary block will be lifted when the pattern is broken, which is at most 4 business days.

This protection triggers only when the previous day’s closing account equity is less than $25,000 at the time of order submission.

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