IB and have i stepped into the bizzaro world
- Thread starter Shaman
- Start date
Unfortunately, derivs traders -- for that matter, any short-term traders -- are considered by the pi**ed-off JQ Public not to be "investors", but to be "short-selling day-trading boutique hedge fund vultures" (ref:CNBC), and "sinister and reckless derivatives traders" (ref:LTCM).
That's not likely to change, especially in a "brutal" or volatile market.
"I suggest you consider upgrading your account to trade futures. Single Stock futures start Nov. 8. In a commodity account they will be subject to the PDT rules and you'll get higher leverage than a cash account."
can u explain what this means def? I just learned (the basics)of ssf's yesterday, and i dont think i understand what u are saying. what is subject to pdt rules? ( sry dunno how 2 do quotes)
can u explain what this means def? I just learned (the basics)of ssf's yesterday, and i dont think i understand what u are saying. what is subject to pdt rules? ( sry dunno how 2 do quotes)
def
Sponsor
Error: meant to say NOT subject to PDT rules.
For the basics check out www.onechicago.com and www.nqlx.com
For the basics check out www.onechicago.com and www.nqlx.com
Hey all you sinister reckless derivative-trading short-selling hedge fund vultures, if you want to help make them pay attention, join us: www.groups.yahoo.com/group/DaytradersUnite/
We can try to do something about it. They're sure not going to do it for us, if we just sit here keeping our objections to ourselves.
cash account should not subject to PDT margin rules. As long as there is no free ride, you should be able to go in and out a position as you wish. That's the basic right to trade with freedom, isn't it?
Stock options is not imagin-able. So they should not be subject to PDT margin rules as well.
NASD/SEC or anyone here, explain why "day trading is generally prohibited" even in the cases where no margin is involved.
Why day trading and margin issues are mixed together? Why use number of day trades as pattern for margin purposes? How beneficial or harmful is this to everyone?
def, would you explain please?
Thank you
Stock options is not imagin-able. So they should not be subject to PDT margin rules as well.
NASD/SEC or anyone here, explain why "day trading is generally prohibited" even in the cases where no margin is involved.
Why day trading and margin issues are mixed together? Why use number of day trades as pattern for margin purposes? How beneficial or harmful is this to everyone?
def, would you explain please?
Thank you
I need help in clarifying this situation. I thought a pattern day trader is one who trades the same stock more than once a day.
For Example:
With an account funded with $30,000.
I can only buy and sell $10,000 of IBM 3 times in the course of a day.
But:
I can buy $30,000 of IBM
Then sell it for $31,000
Buy $31,000 of MSFT
Then sell it for $29,000
Buy $29,000 Nvda
Then sell it for $30,000
And so on and so on
I thought I could keep trading in different stocks without margin as long as I do not execute any trades that exceed the value of my account.
This is the way I traded with Ameritrade. I have recently became a IB client and now wonder if this same situation applies with IB.
I apoligize for my lack of knowledge, but would greatly appreciate any help in resolving this situation.
For Example:
With an account funded with $30,000.
I can only buy and sell $10,000 of IBM 3 times in the course of a day.
But:
I can buy $30,000 of IBM
Then sell it for $31,000
Buy $31,000 of MSFT
Then sell it for $29,000
Buy $29,000 Nvda
Then sell it for $30,000
And so on and so on
I thought I could keep trading in different stocks without margin as long as I do not execute any trades that exceed the value of my account.
This is the way I traded with Ameritrade. I have recently became a IB client and now wonder if this same situation applies with IB.
I apoligize for my lack of knowledge, but would greatly appreciate any help in resolving this situation.
The rules as they are now at IB
You have $30,000 you're alright you can do pretty much anything you want as long as your account's margin value remains over $25,000
The daytrading restriction limits anyone with less than $25,000 in their account to 3 daytrades within any consecutive 5 days.
A daytrade means opening and closing a position on the same day.
You don't get 3 per day, and it doesn't matter if it's the same stock or not. You get 3 within any consecutive 5 days. If you have less than $25,000 and you make 3 daytrades in one day, you won't be able to open any new positions for the next 4 days.
And it doesn't matter what size trades either. If you buy 10 shares of a $1 stock, then sell them the same day, then buy 10 shares again, sell them same day, then buy 10 shares again and sell them same day, you've used up your 3 daytrades for the next 5 days. It's a STUPID rule!
You have $30,000 you're alright you can do pretty much anything you want as long as your account's margin value remains over $25,000
The daytrading restriction limits anyone with less than $25,000 in their account to 3 daytrades within any consecutive 5 days.
A daytrade means opening and closing a position on the same day.
You don't get 3 per day, and it doesn't matter if it's the same stock or not. You get 3 within any consecutive 5 days. If you have less than $25,000 and you make 3 daytrades in one day, you won't be able to open any new positions for the next 4 days.
And it doesn't matter what size trades either. If you buy 10 shares of a $1 stock, then sell them the same day, then buy 10 shares again, sell them same day, then buy 10 shares again and sell them same day, you've used up your 3 daytrades for the next 5 days. It's a STUPID rule!
Thank you hii a ooiioo a, for the education. The only thing I still not sure about is what you mean by account margin value.
I was hoping to buy and sell thru the course of the day and not have to rely on dealing with margins. I do not quite know why, but I have a fear of dealing with margins
As an Example:
I have a $35,000. cash account and thought I could buy $35,000. of stock in the morning then sell it.
Take the proceeds of the prior transaction and buy another stock the same day, and be able to repeat this over and over again, and not have to trade thru a margin as long as the value of the new purchase does not exceed the value of the account, including the proceeds of the last transaction. Also that the value of the ccount does not fall below $25,000.
Am I interpreting the rules correctly or will this trading style result in a margin call.
I was hoping to buy and sell thru the course of the day and not have to rely on dealing with margins. I do not quite know why, but I have a fear of dealing with margins
As an Example:
I have a $35,000. cash account and thought I could buy $35,000. of stock in the morning then sell it.
Take the proceeds of the prior transaction and buy another stock the same day, and be able to repeat this over and over again, and not have to trade thru a margin as long as the value of the new purchase does not exceed the value of the account, including the proceeds of the last transaction. Also that the value of the ccount does not fall below $25,000.
Am I interpreting the rules correctly or will this trading style result in a margin call.