PDT tracker · Interactive Brokers · checked 2026-09-25
Interactive Brokers after the PDT repeal: day-trading checks and expiration mechanics
The $25,000 pattern-day-trader minimum ended 2026-06-04. Each broker now decides how it checks day-trading margin and what it does at expiration. The table shows Interactive Brokers's published values — and says so when we could not find one.
| Last time to submit exercise / do-not-exercise instructions on expiration day (ET) | 17:25 ET — IBKR must receive exercise / lapse requests for US-listed equity options by 5:25pm ET (Option Exercise window or Message Center ticket); exercises and lapses are irrevocable |
|---|---|
| What the broker does with an expiring ITM position the account cannot afford to take delivery on | IBKR simulates expiration under plausible price scenarios; accounts projected to violate margin after settlement may face liquidation of expiring positions on the last trade date, lapsing (non-exercise) of long ITM options, immediate liquidation of underlying positions subject to delivery, and closing-only restrictions. |
| How the post-repeal day-trading margin check is applied (real_time | end_of_day | none) | real_time — Intraday Margin Deficit (IMD) framework: trades that reduce excess liquidity can create an IMD to be met promptly (ideally within 3 business days); 4+ unmet IMDs in 12 months → 90-day restriction. IBKR notes some accounts may still see legacy PDT rules during FINRA's transition (ends October 2027) |
| Minimum equity the broker requires to day-trade on margin after the June 2026 PDT repeal (USD, null = none published) | 2000 — the $25,000 PDT minimum is removed; the standard Reg T $2,000 minimum still applies to trades using margin or short sales |
| Settlement the broker applies to option proceeds in a cash account (e.g. T+1) | T+1 (US options: one day) |
Sources: www.interactivebrokers.com · www.interactivebrokers.com · www.interactivebrokers.com · methodology · no affiliate links.
0DTE expiration day at Interactive Brokers
| Fact | What Interactive Brokers states | Source |
|---|---|---|
| Exercise / do-not-exercise cutoff on expiration day | 5:25pm ET — IBKR must receive exercise / lapse requests for US-listed equity options by 5:25pm ET (Option Exercise window or Message Center ticket); exercises and lapses are irrevocable | www.interactivebrokers.com verified 2026-09-25 |
| In-the-money position the account cannot take delivery on | IBKR simulates expiration under plausible price scenarios; accounts projected to violate margin after settlement may face liquidation of expiring positions on the last trade date, lapsing (non-exercise) of long ITM options, immediate liquidation of underlying positions subject to delivery, and closing-only restrictions. | www.interactivebrokers.com verified 2026-09-25 |
| Cash-account settlement of option proceeds | T+1 (US options: one day) | www.interactivebrokers.com verified 2026-09-25 |
| Minimum equity to day-trade on margin | $2,000 — the $25,000 PDT minimum is removed; the standard Reg T $2,000 minimum still applies to trades using margin or short sales | www.interactivebrokers.com verified 2026-09-25 |
SPX 0DTE (SPXW) settles in cash at the 4:00pm ET official close regardless of broker — what an in-the-money SPXW settles to. SPY/QQQ expiring in the money are exercised by the OCC at $0.01 unless instructed by the cutoff above — what an in-the-money SPY 0DTE turns into. Missed the cutoff? What happens after the exercise cutoff passes.
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Quick answers
Does Interactive Brokers still enforce the $25,000 pattern-day-trader minimum?
The FINRA minimum was eliminated effective 2026-06-04; brokers phase in their own day-trading margin checks through October 2027. Interactive Brokers applies its check real time — Intraday Margin Deficit (IMD) framework: trades that reduce excess liquidity can create an IMD to be met promptly (ideally within 3 business days); 4+ unmet IMDs in 12 months → 90-day restriction. IBKR notes some accounts may still see legacy PDT rules during FINRA's transition (ends October 2027).
What is Interactive Brokers's exercise cutoff on 0DTE expiration day?
Interactive Brokers states 5:25pm ET for exercise / do-not-exercise instructions on expiration day (as published: “17:25 ET — IBKR must receive exercise / lapse requests for US-listed equity options by 5:25pm ET (Option Exercise window or Message Center ticket); exercises and lapses are irrevocable”; www.interactivebrokers.com, verified 2026-09-25). The cutoff applies to physically settled SPY and QQQ contracts; SPXW settles in cash at the 4:00pm ET official close with no exercise decision.
What does Interactive Brokers do if my 0DTE finishes in the money and I can't take delivery?
Interactive Brokers states: “IBKR simulates expiration under plausible price scenarios; accounts projected to violate margin after settlement may face liquidation of expiring positions on the last trade date, lapsing (non-exercise) of long ITM options, immediate liquidation of underlying positions subject to delivery, and closing-only restrictions.” (www.interactivebrokers.com, verified 2026-09-25). For SPY/QQQ, OCC exercises any contract in the money by $0.01 or more at the close unless a do-not-exercise instruction reaches the broker by its cutoff; SPXW settles in cash, so there is nothing to deliver.
Next
- Holding a SPY 0DTE into the close? see exactly what 4:00 does to it at Interactive Brokers's cutoff
- All brokers PDT-repeal tracker