What is a day trade?

A day trade is when you buy and sell the same stock on the same market day.

It’s important to note that the order of these trades doesn’t matter. This means that if you were to place a sell order of a stock, followed by a buy order of the same stock on that same day, this would still be considered a day trade.

What are my day trade limits?

When you buy stock using Cash App Investing, you are limited to 3 day trades within a rolling 5 day trading period.

This limit applies to day trades of the same or different stocks. This means that no matter which stock is being traded, any day trade made in your account will apply to your total limit of 3 day trades per rolling 5 day period.

For example, on Monday, you buy and sell ABC stock. That’d be your first day trade. Then, you buy and sell XYZ stock on that same day. That’d be your second day trade.

In this example, you would only have 1 more day trade remaining, regardless of the stock being traded.

What if I reach my day trade limit?

If you exceed your day trade limit, you can still buy and sell stock as long as you’re not placing a day trade.

For example:

  • Monday: buy and sell ABC stock - 2 trades amounting to 1 day trade
  • Tuesday: buy and sell EFG stock, buy and sell XYZ stock - 4 trades amounting to 2 day trades
  • Wednesday: buy ABC stock - 1 trade

In this scenario, you hit your day trade limit after buying and selling XYZ on Tuesday. Due to this limit, you could buy ABC on Wednesday, but wouldn’t be able to sell it until Thursday at market open. In this case, the next day in which you could make another day trade would be the following Monday.

How long until my day trade limit resets?

The rolling 5 day trading period is based on when the market is open (typically Monday through Friday, 9:30AM–4PM EST, excluding holidays).

It’s important to note that this rolling 5 day period is based on market days only; the weekend and holidays are not included in the rolling 5 day period. This means that a day trading limit can span separate weeks.

For example:

  • Tuesday: buy ABC stock, sell ABC stock, buy ABC stock, sell ABC stock - 4 trades total amounting to 2 day trades
  • Wednesday: buy and sell ABC stock - 2 trades total amounting to 1 day trade

In this example, the user has reached their limit of 3 day trades with Tuesday being the first day of the 5 day rolling period. Since the stock market is not open on Saturday and Sunday, they are not included in this rolling period. The next day on which a day trade could be made is the following Tuesday, as it would occur just outside of your 5 day rolling period.

Broker-Dealer Disclosures

Cash App Investing Broker-Dealer Disclosures