Pattern Day Trader IB

[alanm]

There are situations where it can happen accidentally, like overfills.

 

[Gustaf]

How do you guys n girls manage not to get PDT violations you have large accounts?

 

[Bitstream]

Quote from Gustaf:

How do you guys n girls manage not to get PDT violations you have large accounts?

havin' at least $30k in your acct should be mandatory, how on earth can u trade with a rule that doesnt allow u to recover your losses or takin' more chances if u get it wrong a couple of times in a row[?]

 

[Gustaf]

Quote from Bitstream:

havin' at least $30k in your acct should be mandatory, how on earth can u trade with a rule that doesnt allow u to recover your losses or takin' more chances if u get it wrong a couple of times in a row[?]

Thats why iam having problems

 

[loufah]

Look at your statements and see which trades got made. When I was flagged as an underfunded PDT at IB, I was surprised, because I keep track of my trade count. What I didn't know was that (1) the expiration of a worthless option counted as a transaction that takes place on Friday, so any opening transactions of an option on its last trading day resulted in a day trade if it expired worthless. (2) IB told me that they didn't implement 6% exclusion ("If day-trading activities do not exceed six percent of the customer’s total trading activity for the five-day period, the clearing firm is not required to designate such accounts as pattern day traders") Since this is optional, IB was still following the rule; at the time, I had read a paraphrase of the rule rather than the actual text from the NASD.

 

[Gustaf]

Quote from loufah:

Look at your statements and see which trades got made. When I was flagged as an underfunded PDT at IB, I was surprised, because I keep track of my trade count. What I didn't know was that (1) the expiration of a worthless option counted as a transaction that takes place on Friday, so any opening transactions of an option on its last trading day resulted in a day trade if it expired worthless. (2) IB told me that they didn't implement 6% exclusion ("If day-trading activities do not exceed six percent of the customer’s total trading activity for the five-day period, the clearing firm is not required to designate such accounts as pattern day traders") Since this is optional, IB was still following the rule; at the time, I had read a paraphrase of the rule rather than the actual text from the NASD.

I have checked, i actually did 4 round trip trades, 2 stock, 2 option.

They have performad an account reset. In September i will put approximately $30000 to be able to trade freely.