$25,000 minimum for daytrading needs to be changed

Quote from ScalperJoe:

Excellent post, and it's important to understand the concept of "settled" cash balance. If you buy a security using your cash balance in a retail account and hold overnight, you CANNOT "churn" the cash once that security is sold due to Reg T rules, which makes you wait for "T+3" (trade day plus three days) in order for the cash to become settled.
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Not exactly.

The Reg T rules you're referring to only apply to a cash account. If you close a trade that hasn't settled yet and you've not deposited the Reg T minimum to cover the trade you're freeriding and end up with an account that's frozen for 90 days.

However, once the trade settles (or you've deposited funds) you can sell stock from a settled trade and use those proceeds to create another position during the same day.

But, those Reg T rules do not apply to a margin account unless the broker, who's free to implement more restrictive margin rules than Reg T, has done so.
 
Quote from jprad:

However, once the trade settles (or you've deposited funds) you can sell stock from a settled trade and use those proceeds to create another position during the same day.

But, those Reg T rules do not apply to a margin account unless the broker, who's free to implement more restrictive margin rules than Reg T, has done so.
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Ok thanks for clarification. Sure, you can always use proceeds from settled trades.
 
Quote from athlonmank8:

there's so many things wrong with what you just said idk where to start with you. Maybe you're drunk.....?
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Instead of insulting me, or making such short poor rebuttals, how about a long winded response, or didn't your parents teach you how to do this or have manners?


America is about freedom, but that doesn't give you the right to walk down the street carrying a bazooka. The exchanges have rules, you have the option of abiding or don't play the game. You also have the option of writing to your congress, but yeah, that takes effort, easier to whine about it.

What kind of a speedboat can you buy for several thousands dollars? You think you can make a living with a lesser boat compared to those who have larger boats?

I don't recall the year, but remember there were three killings at brokerage houses cause the retail day traders lost their money and of course the broker made much of their losses thru commissions, I don't recall how soon after the rule came out.
 
The pattern day trade rule is probably determined by the capital markets subcommittee, in the House. The Republican in charge of that is Garrett (NJ) and the staffer for that committee is Scott Eckel. Email him at scott.eckel@mail.house.gov and let him know what you think about PDT. Be nice.
 
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Quote from spindr0:

FINRA's explanation for the PDT rule was that sufficient levels
of equity are needed to support the risk of day trading.
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Quote from ForexForex:

And how is it more risky to hold stocks or options for one day as compared to overnight? I would think overnight is more risky because of gaps.
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And you want me to explain FINRA's thought process to you?
 
Quote from ScalperJoe:

Excellent post, and it's important to understand the concept of "settled" cash balance. If you buy a security using your cash balance in a retail account and hold overnight, you CANNOT "churn" the cash once that security is sold due to Reg T rules, which makes you wait for "T+3" (trade day plus three days) in order for the cash to become settled.

That's for a cash account

There is no way around this "settled" vs. "unsettled" cash rule, regardless of your balance. So even if you have $100k in a retail account, you cannot buy and sell $1 million of stock in a day, as you'd be using "unsettled" cash once you go beyond your net cash balance.

PDT in margin acc't can turn the money over as much as he likes
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