Bingo !
too many small guys eating in market maker profits through scalping
Quote from trader_david:
PDT rule is the FUCKING NYSE/NASDAQ sec rule. it is unfair to small account holders, the government just put this ban on small accounts, they take excuse to protect small investors, actually they do not want everyone to do day trading business, the hiden reason is those big guys lobbied goverment to set up this rule since they do not want small guys to compete and take away their business, the internet makes everyone traders possible, those big guys saw this as a big threat.
for example, someone in a 5 day sessions already did three day trades, then he opened XXX trade, somehow he found XXX did not perform well, he will face the PDT rule dilema, particularly if his account is under $25k, if he cut loss, "sorry, you are pattern day trader, no more trading at least 90 days", if he did not cut loss, he knew next morning maybe a nightmare, like BSC, over the weekend, gapped down from 30 to 2+, even 100shares, you lost shit, that is not protection, that is a trap.
plus this, the governement set another rule:wash sale. you can not deduct tax over $3000. but the big guys can do that through Mark-market accounting...
eat it and swallow it and live with it...
there is no PDT rule in future trading
IB is blocking ALL opening trades.Quote from loufah:
If you're a PDT and your margin equity (cash + holdings minus options) falls below $25K, my understanding was that you can still trade, but not using any margin, for 90 days. Meaning you can only open a position if you have cash lying around in the account. Was your broker doing anything more restrictive than this?