posted
I've only put $500 into my Ameritrade account. This is a statement made by Ameritrade:
Minimum Equity Requirement – A pattern day trader's account must maintain a minimum equity of $25,000 at the start of any day in which day trading occurs. Pattern day-trader accounts that fall below the $25,000 minimum equity requirement should consider limiting day-trading activities to cash-only transactions until the minimum equity amount is reached in order to avoid a day-trading buying power call.
Does this mean after I fill the requirements of being a daytrader, which means 4 or more trades in 5 business days they will not allow me to trade with just $500?
posted
i use ameritrade with about $500ish. no problems. you can't buy and sell in one day and have the cash right away. you have to wait like 3 days for the trade to settle or some crap.
IP: Logged |
Your order was not accepted. Funds are not available for this transaction of a non-marginable security.
Gotta wait 5 days for the deposit to clear. I put it in on Tuesday so I guess I'm stuck till tomorrow then. I forgot yesterday wouldn't count because of the holiday...
posted
You can have less than $2k I think and have a margin account still. You have to apply for a margin account through them, but eliminates the 3 day wait period for a sell to settle. You don't ever have to dip into your margin account and I think that's what they're recommending. Just use the cash on hand. (or the cash that you know will be on hand)
quote:Originally posted by CGHitman14: I'm just asking, to trade stocks like QBID, IBZT, etc. do I need to have a margin account?
No, you do not need a margin account to trade stocks such as QBID and IBZT.
What I think people are trying to say is that when you by in and out of stocks sometimes after you sell a stock that money is not available for 3 days. If you have a margin account then you do not have to worry about the 3 days. As long as you do not spend more than the amount of cash from the sale of the stock that you are waiting to settle then you do not have to worry about dipping into your margin account.
Hope that makes sense.
[This message has been edited by Robday (edited February 17, 2004).]
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