Originally posted by AAAintheBeltway in "cash account" thread
Fohat is totally correct. Brokers can and do allow daytrading in cash accounts and provide instant BP updates. Of course, they don't have to , as Cyber and some others have apparently chosen . I don't want to name the one I am using for fear they will change policy, but rest assured it is a big, well-known one and i just did it and watched BP go down and return to beginning of day figure.
Thank you AAAintheBeltway, for giving an example of a big broker that provides daytrading in cash accounts.
Bucky Lee,
Your empty declarations, not backed up by any regulation and arguments, have legally no value.
With unsupported blank statements, No arguments, funny remarks and rude suggestions your posts don't contribute constructively to any elitetrader discussion. They're appropriate for a newspaper comic section. Either support your declarations, or at least don't disturb serious topic threads with outrageous claims and nasty remarks.
dufferdon,
In your example, you're entitled to receive $90k in proceeds. When? 3 days later, at settlement you recieve $90k.
You also need to deposit a total of $90k. When? 3 days latter, at T+3 settlement,you need to pay $90k
At settlement, you recive $90k whith which you pay the $90k due. You pay for each purchase, before selling it. Hence, there's no free-riding.
How do I pay? Each individual purchase (of $10k) is paid by the settled cash proceeds of the previously sold security. Which is in detail supported and explained by the Federal reserve
http://www.federalreserve.gov/boarddocs/legalint/MarginRequirements/1999/19990218/ and in my previous posts.
All costs are covered, all transactions go through and are in accordance with the law.(Reg.T)
This clarifies your questions.
Fohat
