Faction...
No...
if you do more than 3 daytrades in the 5 day period, you will then be restricted to trading on a CASH-ONLY basis, and thus be subject to the T-3 settlement...
this of course is unless you bring your account equity up to the required $25,000 by either depositing the funds, or simply building it up through trading profits
i.e. let's assume that you start out with $10,000... most brokers will allow you 4:1 margin for daytrading buying power, so theoretically, you could day-trade with $40,000 up to 3 times in any rolling 5 day period.
However; if you do the 4th day-trade, you will receive a margin call requesting that your account be brought up to the $25,000 equity.
If you do not meet the margin call, your account will then be suspended for margin trading...
you are now limited to trading with only the CASH equity in your account, and any profits from trading will NOT reflect in your buying power for 3 days...
In other words, you can trade with your original $10,000 as much as want to...
but keep in mind, if you buy $3,000 worth of stock this morning, and sell it this afternoon for a $300 profit, you will not see that reflected in your account until 3 days later...
until then, you will only have $7,000 to work with, and you will not have any margin buying power...
hope this helps
Dave
