I am kind of new to day trading stocks. I was just a bit confused regarding the pattern day trade rule which prevents people with under $25,000 to exceed 3 day trades per week.
Does the $25,000 have to be in cash or does it also include the margin which the brokerage firm offers?
Assuming it all has to be my cash not margin, I would like to present a situations and would love to know your opinion:
I ran out of 3 day trades and on my 4th trade of the week I buy 24,000 worth of stocks with my cash and sell them at 25,000, because I am > 25,000 will they remove my previous 3 day trades flag and reset it to zero?