Quote from LongArm:
All this means is that (i) opening and closing a position on the same day is a daytrade, whereas (a.) closing an overnight position and then opening a new position in the same stock on the same day is NOT. Open-close, yes. Close-open, no.
Yes, I'm well aware. I was trying to keep the explanation as simple as possible (a 1-lot position).Quote from jprad:
You're equating a position to a buy, which is wrong.
While you can only have a single position in a stock it can be composed of several lots. Each lot is created with each separate purchase.
No, it doesn't state that at all. Okay, I'm going to try one more time, this time altering it a bit (in bold) because I have a hunch where you may be getting tripped up:The rule clearly states that the position needs to be closed before another purchase is made in the same stock.
Does that help?(i) The term âday tradingâ means the purchasing and selling or the selling and purchasing of the same security on the same day in a margin account unless that buy and sell is due to...
a. a long security position held overnight and sold the next day prior to any new purchase of the same security. That is NOT a day trade