SEC Regs have me confused... if I have 50,000.00 in my margin account (2:1) does that mean that in any 3 day period I can only buy 1000 shares @ 50 and sell the same? If on Monday I were to buy 1000 shares at 50 bucks per share and 20 minutes later sell the same 1000 shares then I would have to wait until Thursday of the same week before I can use my money to buy again? I hope I am wrong. Thanks
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Daytrading Question... please help.
- Thread starter El Cazador
- Start date
if you have 50k, these rules don't affect you
I don't mean the "New" rules... If I use my entire account and my margin for a trade on Monday do I (as the rules now stand) need to wait until the trade clears before making another purchase? And I understand that it takes 3 days?
amigo, no problemo.. =)
you are correct in your statement if you do not have a "daytrade" account.. normal brokerage accounts take 3 days to settle.. if on the other hand you are with a broker that uses a clearing firm geared toward traders then your trades are handled as though they were cleared immediately, allowing you to trade in and out of as many positions as you desire so long as you dont exceed your buying power with current open positions.. if you have a direct access broker then you have nothing to worry about.. if you are with ameritrade, datek, etrade, mydiscountbroker (if you specify the account is for daytrading) or mytrack then you are ok.. only if you are with one of the smaller brokers or a full service firm should you encounter a problem..
=)
-qwik
you are correct in your statement if you do not have a "daytrade" account.. normal brokerage accounts take 3 days to settle.. if on the other hand you are with a broker that uses a clearing firm geared toward traders then your trades are handled as though they were cleared immediately, allowing you to trade in and out of as many positions as you desire so long as you dont exceed your buying power with current open positions.. if you have a direct access broker then you have nothing to worry about.. if you are with ameritrade, datek, etrade, mydiscountbroker (if you specify the account is for daytrading) or mytrack then you are ok.. only if you are with one of the smaller brokers or a full service firm should you encounter a problem..
=)
-qwik
Thank you all so much!