Lying to Brokers to open accounts

Nicodemus · Dec 12, 2001

SR-NASD-00-03

The NASD, through its wholly owned subsidiary, NASD Regulation, Inc., is filing with the SEC a proposed rule change to amend NASD Rule 2520 to impose overall more stringent margin requirements for day-trading customers. The proposed rule change would:

(1) Revise the definition of "pattern day trader" to include any customer who (a) the firm knows or has a reasonable basis to believe will engage in pattern day trading, or (b) day trades four or more times in five business days, unless his or her day-trading activities do not exceed 6% of his or her total trading activity for that time period;

StockApprentice · Dec 12, 2001

Originally posted by StockApprentice

Where did you get this information? I haven't read anything like that anywhere that I've looked.

Just trying to get my question answered

Nicodemus · Dec 12, 2001

Apprentice

I found the above in about 30 seconds on Google.

voodoo_invest · Dec 12, 2001

You are considered a PDT if you make 4 or more executions within any 'rolling' 5 day period

Day trades, not executions. The purchase and sale (in any order and any number of shares) of the same stock on the same day.

voodoo

macal425 · Dec 12, 2001

"Day trades, not executions. The purchase and sale (in any order and any number of shares) of the same stock on the same day."

Correct Voodoo, I did mean day trades.

StockApprentice · Dec 13, 2001

I stand corrected

I had apparently misread the rule. Thanks for the correction guys.

stock777 · Dec 16, 2001

Pattern Day Trader.

Always thought it had the taint of something tawdry, like Pattern Sex Offender, or Pattern Adulterer.

OTOH maybe it does :eek:

TickRader · Dec 18, 2001

This is part of the new NASD rule:

Pattern day traders who fall below $25,000 will be permitted to execute transactions only on a cash available basis for 90 days or until the account goes back upto $25,000.

This mean if you are a Pattern day traders and do not have $25,000 you can day trade all day with just your cash available.

I know this for a fact and I because day trade all day with just $20,000.

Tick

BSAM · Dec 19, 2001

TickRader:

Who's your broker?

BSAM

Trader5287 · Jan 18, 2002

I was patterned a while back by Mr. Stock and am hopelessly mired in mud trying to open an IB account for the past three months, so I do some IRA "rebalancing". I offended, apparently, in a Fidelity SEP/IRA and received a letter demanding money (which you can't send if you already did this year) or threatening a 90 day suspension. I didn't know PDT rules apply to IRAs and I notice Datek hasn't yelled at me.

I think I'm going to fight Fidelity on this one.

Geo.