Does a Position Reversal Count as a Day Trade to The SEC?

N

NetLo$$

I'm new to trading and I am wondering if anyone could tell me if the SEC counts what I would best describe as a position reversal as a day trade?

Example: A trader has been long 1 share of XYZ stock for a few days and upon receiving a sell signal from her system, she places an order to sell 2 shares of XYZ changing her position from long 1 share to short 1 share and she holds the short position overnight.

Would the SEC consider that a day trade?
 
Hi, I had a Clearing House break a trade to prevent one of my accounts from hitting the PDT rule. It should work, I was lucky my Clearing House was willing to do this, don't expect a Hail Mary like I got.

The trade was only a $3.00 gain total, it was their system's fault because I was trying to buy more of the stock and hit sell!
 
NetLo$$ said:
Example: A trader has been long 1 share of XYZ stock for a few days and upon receiving a sell signal from her system, she places an order to sell 2 shares of XYZ changing her position from long 1 share to short 1 share and she holds the short position overnight.

Would the SEC consider that a day trade?
More...

That is not a daytrade. An overnight position was liquidated and a new one created.
If you then exit the 1 share short on the same day you initiated the position that would be a daytrade.
 
Sorry, my brain must have been in another location, thank goodness we have great people (Stock Apprentice) who answered your question perfectly! Please forgive my stupid response.
 
No apology necessary I appreciated your response. While insightful, it wasn't helpful for what I was asking, but I do have it tucked away in my memory bank for future reference. Sorry for leaving you out of my thank you earlier.
 
You must log in or register to reply here.
Back
Top