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Author Topic: GRRR... Im so lost
EpiC
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I know this is not the correct thread to post this but does anyone use ameritrade? if you do can you explain something to me. I have a cash account, I have no access to margins since I dont have more 25k+ in my account. My funds have been frozen for day trading and ameritade has issued a margin call agaist my account for day trading. They are telling me that they will not be release the funds for 5-10 rolling days. This really F@#CK me since all of my money was tired up in the trade. I am very new to trading stocks and I dont understand.
Can some one explain this?
"The National Association of Securities Dealers (NASD) currently defines day trading as buying and selling, or short selling and buying to cover the same security on the same day. Amendments to NASD Rule 2520 have revised the definition of a "pattern day trader" to include any client who day trades four or more times in a five-business-day period, unless this activity is less than 6% of their total trading activity in that period.

Pattern Day Trading Accounts
Accounts identified as participating in "pattern day trading" are required to maintain at least $25,000 in equity. These accounts may be given increased buying power up to four times their maintenance margin excess for day trading purchases.

If the equity in the account drops below $25,000, a day trading minimum equity call will be issued. Total purchases will be restricted to two times SRO excess, based on total trading commitment, until the equity in your account increases to $25,000 or more.

Accounts exceeding the permissible day trading buying power will receive a day trading buying power call. Day Trading Buying Power will be restricted to two times SRO excess for up to five business days unless the call is met earlier. If the call is not met within five business days, trading in the account will be restricted to "cash only" for 90 days, or until the call is met.

Please remember that funds deposited to satisfy a day trading margin call are subject to our ten-business-day hold policy with the exception of wires which must remain in the account for two business days. If you have questions please refer to the Margin Handbook or contact a Client Services representative. For a complete copy of these rules, visit www.nasdr.com.: I hate feeling stupid but I feel that ameritade is in the wrong and not me... Help would be nice.


Posts: 32 | From: San Diego, CA, USA | Registered: Jun 2004  |  IP: Logged | Report this post to a Moderator
VNGNTN1
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EPIC
I fully understand this problem I started 5 years ago with $500 and struggled with cash accounts. Let me offer a general overview in order of importance:
1-PLAN,PLAN,PLAN
2-EXECUTE YOUR PLAN
3-DON'T SECOND GUESS YOUR PLANNING
4-DON'T USE MARGIN
Ameritrade is a good broker
VAN

Posts: 1424 | From: Peoria, IL. USA | Registered: Oct 2003  |  IP: Logged | Report this post to a Moderator
Meshoe45
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If you are not using Margin there should be no problem at all.
Posts: 1451 | From: Somersworth, NH | Registered: May 2004  |  IP: Logged | Report this post to a Moderator
TenaciousDoll
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Thought you only needed $2,000 for margin, not $25,000?
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Bob Frey
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The 25k is for a "day Trader" not the margin account it's self.
Posts: 3417 | From: Cleveland, Ohio | Registered: Jan 2000  |  IP: Logged | Report this post to a Moderator
keithsan
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I'm I have margin, and buy with cash, with ameritrade. I have day trader status, and it doesn't effect me at all. Now and then I end up using a 100 or 2 of the margin on quick plays and it is not a problem.

I used to have a problem before having a margin account, I would have to wait for funds to settle now I can use the same money in and out all day.

I am also shy of having the 25,000 in my account. They will not let you buy a penny completely on margin, but, you are allowed to use a little margin when you buy a block.

hope that helps.

Keith


Posts: 9110 | From: boston, ma | Registered: Jan 2004  |  IP: Logged | Report this post to a Moderator
EpiC
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Thanks everyone for the replys, Keith, how long did you have to wait? was it the full 5 days?
Posts: 32 | From: San Diego, CA, USA | Registered: Jun 2004  |  IP: Logged | Report this post to a Moderator
Machiavelli
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This is one reason you should educate yourself about trading before jumping into the game feet first.. and also never put 100% of your account in any one trade.. you should put no more then 1/3 or 33.3% of your account in any one stock.. <shrugs>
Posts: 4669 | Registered: Mar 2004  |  IP: Logged | Report this post to a Moderator
   

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