posted
Its still alittle unclear to me about the regulations on daytrading . If I open a cash account with $5,000 and not a margin account does the 3 sameday trades limit still apply to me? Or is it that if i want to daytrade more then 3 times a week I MUST open a margin account with $25,000 ? If I have a cash account and I tried to go over my available funds that is on hand wouldn't the broker reject any trade that I try to make anyway? Basically what im asking is if there is any situation that would allow me to trade more then 3 sameday trades per week for under $25,000 in my account
Posts: 4 | Registered: Oct 2004
| IP: Logged |
posted
Only if you use unsettled funds would you have problems! For the first week I figure you would be safe day trading $1000.00 a day (less with commissions of course) Second week you might want to take two days off or better yet the whole week. Then divide that total amount by five days (-minus commissions) and do it over again week after week. (usually takes four days for funds to settle after a trade.) Technically with settled funds you can buy a stock and sell it the same day. then turn around with that money and buy another stock with the unsettled funds but would have to wait until the funds settled to sell the last one. So if you divided your total funds by five days and you should be safe. If you do use unsettled funds they usually send you a nasty gram first.(warning) Then just straighten up your act for a while. I work days so I don'tday trade, so any one else feel free to step in and correct me if I'm wrong here!!
[This message has been edited by MrBill (edited October 13, 2004).]
posted
Thanks MrBill! That makes things perfectly clear to me now . I didnt realize it took the funds about 4 days to settle . Im currently long on sirius and havnt cashed in yet .
Posts: 4 | Registered: Oct 2004
| IP: Logged |
posted
your funds will settle in 3 day's .....if you use them before u will b put on a 90 day restriction
Posts: 5641 | From: Florida | Registered: Sep 2004
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
