posted
I havent had a cash account forever. I've been trading my dad's IRA account lately (can only be a cash account) and I kind of forgot the rules...
Tell me if I'm correct in this assumption.
In a cash account, I can buy and sell a stock the next day as many times a week as I want as long as I have the settled funds to cover the original buy when I go ahead to sell it.
So for example, lets say I buy a stock with unsettled funds, as long as my account shows I have settled funds that are more than the purchase, I can sell that stock at any time?
-------------------- Disclaimer: Not accountable for anything I say Posts: 6266 | Registered: Jun 2004
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posted
True, if you purchase a stock with unsettled funds and sell it before the three day settlement period or before depositing more funds it is considered a free ride.
-------------------- If ignorance is bliss, why aren't more people happy? Posts: 2647 | From: MN | Registered: Feb 2006
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posted
My question is this....if I purchase with unsettled funds because i dont have any funds settled, wait 2 days, and now i have funds settled from some other purchases and sells, if the settled funds cover the original buy amount of the shares I purchased with unsettled funds, I can sell at any time correct?
-------------------- Disclaimer: Not accountable for anything I say Posts: 6266 | Registered: Jun 2004
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posted
I'm sure you guys know this rule but just wanted to add it for the surfers like me... if you do 4 roundtrips (a buy and a sell of the same security on the same day) in a five-day period you will be considered a pattern daytrader. This will require you to maintain $25,000.00 minimum equity. In which case you would want to have a margin account. I have heard some brokers only allow 3 round trips and then they freeze your account.
-------------------- All post are my opinion. Do your own DD. Who's clicking your buy/sell button!? Posts: 7800 | From: Virginia | Registered: May 2006
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Why do people get cash accounts over margin accounts? I just got a margin account approved from scottrade and choicetrade and im just a student with no signifcant yearly income. Is there some catch that im missing out on or something?
Posts: 550 | From: MI | Registered: Nov 2005
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quote:Originally posted by hedfe: Why do people get cash accounts over margin accounts? I just got a margin account approved from scottrade and choicetrade and im just a student with no signifcant yearly income. Is there some catch that im missing out on or something?
Margin accounts can be dangerous to someone who is a action junkie... and let's face it most "traders" on this Bulletin board are action junkies... it's like placing bets on sporting events with a street bookie and eventually you can't pay it back if things don't go your way...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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quote:Originally posted by hedfe: Why do people get cash accounts over margin accounts? I just got a margin account approved from scottrade and choicetrade and im just a student with no signifcant yearly income. Is there some catch that im missing out on or something?
Margin accounts can be dangerous to someone who is a action junkie... and let's face it most "traders" on this Bulletin board are action junkies... it's like placing bets on sporting events with a street bookie and eventually you can't pay it back if things don't go your way...
lol, there is *that*...
also, for instance, I don't do credit cards, either...
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