"Day trade buying power call" question

[Evermore2017]

Hi,

I know that a margin account with PDT flag and over $25000 has a Day trading buying power of 4X, so if I have $50K the Day trade buying power is $200K.

Help me to understand when a Day trade buying power call is generated? or How to avoid it?

Thanks

 

[Evermore2017]

Example :

Cash equity: $50K
Buying power nonmarginable securities: $50K
Day trading buying power(marginable securities): $200K

Can I do this?

>A

-Buy $200K worth of marginable stocks, and then sell it
-Buy again $200K, and then sell it
-and repeat all day long unlimited trades

>B

-Buy $50K worth of nonmarginable stocks, and then sell it
-Buy again $50K, and then sell it
-and repeat all day long unlimited trades

 

[vanzandt]

Example :

Cash equity: $50K
Buying power nonmarginable securities: $50K
Day trading buying power(marginable securities): $200K

Can I do this?

>A

-Buy $200K worth of marginable stocks, and then sell it
-Buy again $200K, and then sell it
-and repeat all day long unlimited trades

>B

-Buy $50K worth of nonmarginable stocks, and then sell it
-Buy again $50K, and then sell it
-and repeat all day long unlimited trades

Yes to both. You can trade all day long.
And if you want to trade options, they are non marginable, so there's a $50K limit on them also.
Have fun.