Pattern Daytrade Rule

<i>"I hope you are correct that futs are safe from legislation."</i>

Futures are safe from PDT type regs. Keep in mind, stock index futures are just one part of the equation. What about grains, metals, softs, meats, oils, bonds and currencies?

The SEC has no dominion past equities. They will not regulate stocks to the exclusion of other commodity markets for a number of reasons. Spreads and hedges inter-market is one of many.

In addition to that, new electronic markets exploding interest and demand for commodity futures products will not be derailed by day-trade limitation rules. With maintanence margins for corn and soybeans at +/- $1,000 per contract, how would they justify $25k minimum account balances?

Not gonna happen. Ever
 
Quote from austinp:

<i>"I hope you are correct that futs are safe from legislation."</i>

Futures are safe from PDT type regs. Keep in mind, stock index futures are just one part of the equation. What about grains, metals, softs, meats, oils, bonds and currencies?

The SEC has no dominion past equities. They will not regulate stocks to the exclusion of other commodity markets for a number of reasons. Spreads and hedges inter-market is one of many.

In addition to that, new electronic markets exploding interest and demand for commodity futures products will not be derailed by day-trade limitation rules. With maintenance margins for corn and soybeans at +/- $1,000 per contract, how would they justify $25k minimum account balances?

Not gonna happen. Ever
More...

austinp, in theory I agree. PDT rules are not likely. As pointed out earlier, exchanges have power to decrease leverage at any time. But remember we're auguring the motives of politicians.

Additionally, in my mind, legislation doesn't only refer to PDT-type. Although this thread title targets PDT, I do think that legislation could be enacted regarding taxes, suitability tests, and a host of account maintenance items. My thesis once again... the more mass-marketed brokerages offer futures, the more diminished the risk stigma becomes, the more people who have no business in the arena lose money, the more likely feds step in.

So as I said, <i>"I hope you are correct that futs are safe from legislation."</i>

Osorico :)
 
The tax issue is definitely something to worry about. The 60/40 rules came under attack three or four years ago. It was "slipped" in with some other legislation in the house but was killed in the senate.

It was a quiet affair, per se.

I recall reading about it on FIA's website.

http://www.futuresindustry.org/

Have a look at this site for the latest news and proposed regulations concerning futures.

Edit: I found a blurb here: http://www.futuresindustry.org/6040taxt-2400.asp
 
When the PDT rule went into effect it essentially shut down the majority of action junkie day traders. This resulted in a huge surge of internet traffic to the porn sites as cyber wandering day traders, suddenly bored, dropped thier shorts around the ankles en masse. It should be interesting to see if the upgraded porn site servers would be able to handle the resulting stampede should the Futures Markets adopt a PDT rule. Such an event would make Y2K look like a walk in the park.

George Rennick Orwell out :cool:
 
Just because you observed two or more phenomena occur simultaneously, it does not establish cause and effect. It is merely interesting.
 
Quote from William Rennick:

When the PDT rule went into effect it essentially shut down the majority of action junkie day traders. This resulted in a huge surge of internet traffic to the porn sites as cyber wandering day traders, suddenly bored, dropped their shorts around the ankles en masse. It should be interesting to see if the upgraded porn site servers would be able to handle the resulting stampede should the Futures Markets adopt a PDT rule. Such an event would make Y2K look like a walk in the park.

George Rennick Orwell out :cool:
More...

I do agree with you in a sense, an addict is an addict is an addict. Some will substitute one thrill for the other. Daytrading can in fact become addicting, that has been proven.

In regards to the other replies, thanks guys and gals for your input. I believe that we may at some point in time see some stiffening tax laws but as far as a minimum account size, I don't see that happening in my life time, but I have been wrong before, believe me. I certainly hope that this would never happen because there are indeed responsible traders out there who follow a strict set of rules who can make it with less than a 25k account. Thanks again.
 
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