posted
What are the limitations if I do not want to be flagged as a pattern daytrader. I think i read somewhere that it is 4 trades of the same stock in a 5 day period. What if I bought something 7 days ago and sold it 3 days ago? Does that count as one? If any of you could help me out it would be very appreciated. Also what if I bought today and sold half at one point today and half at another time today . Does that count as 1 or 2? Thank you
Posts: 204 | From: Marietta, GA, U.S | Registered: Apr 2004
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posted
to be flagged as a day trader, trades have to be on the same day. buying seven days ago and selling three days ago is fine. day trader=trades on same day
Posts: 110 | Registered: Sep 2003
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posted
What is a pattern day trading account? The NASD and SEC define a pattern day trading account as an account that makes 4 or more round-trip day trades within any rolling 5 business day period, provided the number of day trades represents at least 6% of the total trading activity during the same 5 business day period.
But being flagged as a pattern day trader doesn't 'hurt' you all it does is allow you access to 'day trading buying power' which, as long as you don't touch it or have at least $25,000 in your account, doesn't mean anything.
posted
If you don't have $25,000 of worth in your account though you get restricted for 90 days. Which means cash transactions only.
Posts: 1006 | From: Camp Hill, PA, USA | Registered: Mar 2004
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quote:Originally posted by Leardron: If you don't have $25,000 of worth in your account though you get restricted for 90 days. Which means cash transactions only.
That's only if you exceed your 'day trading buying power' which is equal to the equity in the account at the close of business on the previous day, less any maintenance requirements, multiplied by up to four.
So you are playing with margin. If you don't use it no harm.
What happens if an account exceeds Day Trading Buying Power on executed day trades? If an account exceeds Day Trading Buying Power on executed day trades, a Day Trading Buying Power Call will be issued. When a call is issued, Day Trading Buying Power will be limited to two times maintenance excess until the call comes due on the fifth business day. If the call is not met within five business days, the account will be permitted to execute transactions on a cash available basis for 90 days, or until the call is met. Multiple day trading buying power violations may also result in a restriction limiting transactions to a cash available basis.
posted
Sorry, I'm new: If you use multiple brokers, and when you sell multiple times, would it "red flag" the sec when they are paid their fee? Is there a main computer base with sec that might track you and show you had multiple sell orders filled, and they check to see if you had buy orders also. Would it only "red flag" you if it is the same stock? If no "red flag" then you would be limited with each broker to the 4 round trips? (Ameritrade is up to 4 round trips) Thanks in advance for the help. Suggestions on extra brokers? I have ameritrade, and sharebuilder ( Sharebuilder does not trade pink sheets etc...) Candydish
[This message has been edited by Candydish (edited May 20, 2004).]
Posts: 240 | From: Buda, Texas, USA | Registered: May 2004
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