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Once in a while, you can daytrade without a daytrading account?
- Thread starter crgarcia
- Start date
From NASD Rule 2520:
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 except for:
a. a long security position held overnight and sold the next day prior to any new purchase of the same security, or
b. a short security position held overnight and purchased the next day prior to any new sale of the same security.
(ii) The term âpattern day traderâ means any customer who executes four or more day trades within five business days. However, if the number of day trades is 6% or less of total trades for the five business day period, the customer will not be considered a pattern day trader and the special requirements under paragraph (f)(8)(B)(iv) of this Rule will not apply. In the event that the organization at which a customer seeks to open an account or to resume day trading knows or has a reasonable basis to believe that the customer will engage in pattern day trading, then the special requirements under paragraph (f)(8)(B)(iv) of this Rule will apply.
...
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 except for:
a. a long security position held overnight and sold the next day prior to any new purchase of the same security, or
b. a short security position held overnight and purchased the next day prior to any new sale of the same security.
(ii) The term âpattern day traderâ means any customer who executes four or more day trades within five business days. However, if the number of day trades is 6% or less of total trades for the five business day period, the customer will not be considered a pattern day trader and the special requirements under paragraph (f)(8)(B)(iv) of this Rule will not apply. In the event that the organization at which a customer seeks to open an account or to resume day trading knows or has a reasonable basis to believe that the customer will engage in pattern day trading, then the special requirements under paragraph (f)(8)(B)(iv) of this Rule will apply.
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You have a margin account with an equity of at least $25k?Quote from crgarcia:
Sometimes I have opened and closed trades, mainly index ETFs in the very same day.
Yet I dont have a daytrading account.
Perhaps my broker, optionsxpress, allows daytrading if done once in a while?
Or OX automatically allows daytrading on all accounts over 25k?
That is what's basically required to "daytrade".
From: patterndaytrading.com:
"The pattern day trader rule applies to all brokers in the United States who are NASD members. There may be foreign brokers who are not directly regulated by NASD and offer pattern day trading to clients with less than $25,000 in their account.
This rule only applies to stock and option trading. There is no pattern day trading rule regulations currently on futures or forex."
"The pattern day trader rule applies to all brokers in the United States who are NASD members. There may be foreign brokers who are not directly regulated by NASD and offer pattern day trading to clients with less than $25,000 in their account.
This rule only applies to stock and option trading. There is no pattern day trading rule regulations currently on futures or forex."