Multiple trades of same symbol - how does it work.

N

newbee2020

I am a novice trader and a question about trading. If I do multiple trades of same ticker in the same day how does it gets executed? does it settle for each trade or the broker just does the accounting for multiple trades and settles the final trade in the end of the day.
ex: If i buy the 100 AAPL stocks 3 times at different prices and sell them 100 APPL stocks at 2 different prices. So effectively, I bought 100 stocks. Does each of my trade goes through the cycle of buy and sell or my broker will just credits and deducts my sales and purchases and the net (sale or purchase) goes through the entire cycle at the end of the day. Thank you.
 
Here is how this works.
Your starting cash: C
Buy 100 AAPL at price X -- your position: 100 AAPL stock, and C - 100*X cash remaining
Buy 100 AAPL at price Y -- your position: 200 AAPL stock, and C - 100*(X+Y) cash remaining
Buy 100 AAPL at price Z -- your position: 300 AAPL stock, and C - 100*(X+Y+Z) cash remaining
Sell 100 AAPL at price A -- your position: 200 AAPL stock, and C - 100*(X+Y+Z)+100*A cash remaining
Sell 100 AAPL at price B -- your position: 100 AAPL stock, and C - 100*(X+Y+Z)+100*(A+B) cash remaining
The position adjustment happens instantaneously at time of purchase or sale if you have a margin account.
 
Thank you.
Kaga said:
Here is how this works.
Your starting cash: C
Buy 100 AAPL at price X -- your position: 100 AAPL stock, and C - 100*X cash remaining
Buy 100 AAPL at price Y -- your position: 200 AAPL stock, and C - 100*(X+Y) cash remaining
Buy 100 AAPL at price Z -- your position: 300 AAPL stock, and C - 100*(X+Y+Z) cash remaining
Sell 100 AAPL at price A -- your position: 200 AAPL stock, and C - 100*(X+Y+Z)+100*A cash remaining
Sell 100 AAPL at price B -- your position: 100 AAPL stock, and C - 100*(X+Y+Z)+100*(A+B) cash remaining
The position adjustment happens instantaneously at time of purchase or sale if you have a margin account.
More...
Thank you.
 
No limit on number of trades, if still have cash and account has margin. Unless if you have less than 25k cash in your account. Then you are subject to the PDT (pattern day trader) rule. Look it up!
 
Kaga said:
No limit on number of trades, if still have cash and account has margin. Unless if you have less than 25k cash in your account. Then you are subject to the PDT (pattern day trader) rule. Look it up!
More...
thanks
 
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