One of the biggest problems with the regulators is they pass rules but they don't define them. If you call three different clearing houses right now, you will get three different answers as to what is PDT...and how to enforce them. one thing to keep in mind is that if you have 25k in an account, then you lose some $$ and fall to say 24k, all your trades the next day are based on 2:1 ratio, so if you were to buy and sell 100k in securities the next day without having 25k or more, you will get a margin call as if you were at 2:1...that could be a 50k margin call!
Pattern Day Trade Rules
- Thread starter syd697
- Start date
I replied to this thread because the original poster struggled with the same issue and same problem as I did. The issue was regarding the daytrader pattern trading rules to options traders which have been in effect for over a year, as opposed to IB's sudden application of those rules to options traders as of tuesday with no notice. Especially after many sources specifically stated that options were not included under the rrule. I am still pissed off about this, especially after reading some the language in documents on the nasd site which seem to specifically omit options trades from the scope of the rule (and def, you moron, thanks again for your kind link to the rules). Further, I dont trade any stock and so I incur no margin from that, and only trade oex options for which there is an unrelated etf (or does it even exist anymore?)
As to etf's, it seems that as long as the commissions are the same as commisions on stock, they'll be treated as stock.
As to etf's, it seems that as long as the commissions are the same as commisions on stock, they'll be treated as stock.
def
Sponsor
Ms. Esq.
This moron posted the rules so you could read with your own legal beagal eyes the FAQ NASD has on their web site. BTW, assuming ESQ means you're an attorney wanna be, i'll give you a hint: name calling won't win favors in court.
Nusrat,
Nice job promoting your firm. My guess is not for long.
This moron posted the rules so you could read with your own legal beagal eyes the FAQ NASD has on their web site. BTW, assuming ESQ means you're an attorney wanna be, i'll give you a hint: name calling won't win favors in court.
Nusrat,
Nice job promoting your firm. My guess is not for long.
NASD has no jurisdiction over its competitors - the Option exchanges.
Option exchanges are separate legal entities and have their own rules.
Daytrading (PDT) rules exist only for NASD and NYSE and only for margin accounts.
No other exchange in the world has such daytrading rules (including all option exchanges).
NASD opinions in FAQs on its website about what other exchanges should do (bullying?), have no legal value and are non binding.
Daytrading rules remain limited to NYSE and NASD margin accounts only, until option exchanges implement them.
Option exchanges are separate legal entities and have their own rules.
Daytrading (PDT) rules exist only for NASD and NYSE and only for margin accounts.
No other exchange in the world has such daytrading rules (including all option exchanges).
NASD opinions in FAQs on its website about what other exchanges should do (bullying?), have no legal value and are non binding.
Daytrading rules remain limited to NYSE and NASD margin accounts only, until option exchanges implement them.
And exactly what is that supposed to mean?
Options are not technically subject to the SEC/NASD daytrading rules. However each house can apply the rules as they see fit (house rules can always be stricter)...As far as Option trading is concerned, in my past i would only approve accounts for the basic writing of covered calls and to buy a protective put...If a client wanted to do trading strategies, I would make sure their new account card showed: liquid net of 100k, Net worth in excess of 250k and annual income of at least 75k...I would not be surprised if many of your accounts are being shut off from options trading for this reason. Futures trading is also technically exempt, but the same "know your customer rule" applies.