NASD Seen Moving Toward Limiting Day Trading

[AAAintheBeltway]

The major impact will be in IRA accounts. I believe IB already does it that way. If you sell a stock, the proceeds are not available to buy something else until it clears three days later. I know that other firms let you use those proceeds immediately however.

 

[maxpi]

Quote from sprstpd:

What is really irritating is that if you look at the rules that cover trading in cash accounts, nowhere does it prohibit daytrading. It is like people suddenly decided to make up a new rule and they didn't bother to put it in writing.

With a cash account you can't use the proceeds from a sale for 3 days. The firms that were ignoring that were in violation. I know that Mytrack would not let me use proceeds for 3 days in a cash account. The trick was to get a margin account, not that I wanted to use the margin, I just did not want to wait 3 days.

Max

 

[lilboy716]

regulations goes to the next highest bidder.

so NASD gotta beef up on the campaign contributions

Quote from BSAM:

NASD probably doesn't WANT to limit day trading, but they HAVE to follow the Federal Regulations.