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Yesterday i bought and sold IVOC during the day and after i sold i realized i coudldnt use the money i had made off the sale to trade other stocks today... i use ameritrade and it was considered unsettled cash.. i am not familiar with this because i very rarely daytrade and wanted to know if this is normal... i heard that you cant use that cash within 4 days.. is that true ...
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stockguy- open up a margin account with Ameritrade. That way you dont have to wait for the cash to settle. Its free and you dont have to use their money if you dont want to.
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Delt has it right, I have a margin account through ameritrade, and I can daytrade with cash- its wonderful! I also have many friends that trade with regular cash accounts and they hate the 3 day hassle.
I applied for options trading, which you need to have margin enabled for. They responded to me and said- you were declined options trading, but we have enabled your account for margin- it was the best thing that ever happened to me!
I wish I had options though, at the time I wanted the jan 04 nortel call option, strike price was like 2.50, woulda made a bundle!
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cabbage if you ever have time do u think you could explain options to me... i am new to frequent trading... i used to just let my money sit in the account and choose a couple nice stocks every year and do nothing but not im becoming more active and want to learn...
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04 I"d stay away from margin. Sure it's easy but has a way of building beneath your conciousness when you are trading. If they ever force you to cover and you can't they will go right down your positions and sell you out. If youare only looking for a couple deals a year you don't need it. About options This a a separate pool of money, much more risky and indicates where a stock will go. kind of like a poker game. you are sure the guys got an inside straight but you must raise or call the hand. The hand is set at a "strike" (where the stock will go to) a "date" (when it will reach the strike) and a "premium" what someone is raising, calling or ante up. There are bets on both side "CALL" or "PUT". You can buy or sell on either side. OPTIONS are a good place to look before you buy a stock.VAN
[This message has been edited by VNGNTN1 (edited January 08, 2004).]
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