Lightspeed will implement updated Pattern Day Trading (PDT) rules on 4 June.
For me, it is not so much the 4x leverage, but the intraday rather than next-day share renewal that makes a significant difference for day traders.
Lightspeed is offering 4x leverage on accounts with an initial balance of at least $5,000, which they call margin 2. However, not all stocks are suitable for full leverage; suitability depends on their risk and volatility.
Many low float stocks fall into this category and are often not available with full or even partial leverage.
The other, and my preferred option with Lightspeed, using the same account size, is called Margin 1. This option does not provide leverage, but like Margin 2, it allows intraday recycling of shares traded, meaning your buying power is immediately restored after closing a trade, so you can use those funds for additional trades on the same day.
(With OTC accounts, funds are also returned immediately after closing a position. However, OTC accounts are decentralised and don’t offer reliable market depth or Level 2 information.)
Equities and futures provide usable Level 2, or “tape,” and depth-of-market displays, respectively.
I have chosen to day trade low float equities, which are generally low-CAP NYSE-listed shares.
Before 4 June 2026, the significant disadvantage of trading NYSE equities was the next-day settlement, particularly for a lower-funded account.
These new PDT rules create significant opportunities for profitable traders, as more trades can be made in a session if opportunities arise.
Slow Trader 