Pattern Day Trade Rules
- Thread starter syd697
- Start date
I was pissed off about this all day and was doing some digging on this issue. Since IB only allows (non-futures) options trades in margin accounts, it's arguable that pattern daytrader applies to options too.
My beef is that this came out of nowhere after much discussion and explanations that the pattern daytrader rules WOULDNT apply to options or futures. To make matters worse, no notice was given to us that the rules would apply WAY WAY WAY after the fact. Then those jerks in customer support only knew how to paste the link to the nasd website. When I pointed out that their own website specifically excluded options from the rules, they said that the options referred to were futures options. Which they weren't.
Either way we're screwed. Now I'll have to learn to trade the spoos.
My beef is that this came out of nowhere after much discussion and explanations that the pattern daytrader rules WOULDNT apply to options or futures. To make matters worse, no notice was given to us that the rules would apply WAY WAY WAY after the fact. Then those jerks in customer support only knew how to paste the link to the nasd website. When I pointed out that their own website specifically excluded options from the rules, they said that the options referred to were futures options. Which they weren't.
Either way we're screwed. Now I'll have to learn to trade the spoos.
def
Sponsor
http://www.nasdr.com/day_trade_margin.asp
From the above link: "Does the rule apply to day trading options?
Yes. The day trading margin rule applies to day trading in any security, including options. "
Sorry about being a jerk by just posting the link.
ETF' s are stocks so they fall under the PDT rule, that's too bad. Shame on the NASD and the US regulators for allowing such kind of rule to exist. I would strongly advise people against trading the eminis, unless they have a decent account size( in which case the PDT rule shouldn't be a problem). The leverage is too big with a 10K account. You end up taking plenty of smalll losses and take profits too soon or take hits too big for your account. Read the trading journals on this site. As for me I have been daytrading ES for a year and lost 2K, my biggest gain was $375 (!)biggest loss $175, plenty of $50 loss and breakevens. Now I trade ETF's only in two accounts, 3-4 days per week (Friday sucks most of the time) Spiders are great, only a fifth of ES point value.