Pattern Daytrading poll

qdz · Dec 16, 2002

5. Why do some people support the PDT rules?

Besides those who benefit directly from the PDT rule, there are however some people support the PDT rules. They are not beneficiary, at least not directly. They merely want to see small investors screwed. That's there key edge to be successful in the market which is to be inhuman.

Quote from qdz:

FAQ:
4 Why shouldn't the PDT rule apply to stock options?
The PDT rule claims itself to protect brokers from excessive use of margin. However, stock options are not marginable. Also, options have sensitive time and volatility value associated with it. The PDT rules damage stock options as financial instruments.

qdz · Dec 17, 2002

6. What are the manipulators endorsed the PDT rules?
A: Manipulators like low volume and concentrated transactions. They like 1 offer/bid of 1000 shares at one price more than 10 offer/bid of 100 shares at ten price. Further by eliminating the freedom right of enter/exit the market of some participate using PDT rules, manipulators are at their will.

Low volume manipulator is my example to keep this thread on top at low volume hours on ET.

Quote from qdz:

5. Why do some people support the PDT rules?

Besides those who benefit directly from the PDT rule, there are however some people support the PDT rules. They are not beneficiary, at least not directly. They merely want to see small investors screwed. That's there key edge to be successful in the market which is to be inhuman.

qdz · Dec 17, 2002

7. How many days did NASD ask public opionions on the PDT rule proposal?
A: Less than a week.

Quote from qdz:

6. What are the manipulators endorsed the PDT rules?
A: Manipulators like low volume and concentrated transactions. They like 1 offer/bid of 1000 shares at one price more than 10 offer/bid of 100 shares at ten price. Further by eliminating the freedom right of enter/exit the market of some participate using PDT rules, manipulators are at their will.

Low volume manipulator is my example to keep this thread on top at low volume hours on ET.

metooxx · Dec 17, 2002

Quote from qdz:

7. How many days did NASD ask public opionions on the PDT rule proposal?
A: Less than a week.

By regulation ...

Glenn_Dude · Dec 17, 2002

OK , so I'm totally confused about this subject . Can anyone help me with this ?
I asked IB help to tell me which one applies , and , as usual they referred me to NASD website to read about it & they wouldn't explain . And after reading the official website info , I'm still confused about the subject .

qdz · Dec 17, 2002

Glenn_Dude, I don't know the answer to your question. That's an evidence that you still cannot trade freely with 25K or a little more. Hope some nice people here will give you an acurate answer.

Quote from Glenn_Dude:

OK , so I'm totally confused about this subject . Can anyone help me with this ?
I asked IB help to tell me which one applies , and , as usual they referred me to NASD website to read about it & they wouldn't explain . And after reading the official website info , I'm still confused about the subject .

Glenn_Dude · Dec 17, 2002

Quote from qdz:

Glenn_Dude, I don't know the answer to your question. That's an evidence that you still cannot trade freely with 25K or a little more. Hope some nice people here will give you an acurate answer.

Thanks qdz
My account liquidation value is more than the rquired 25 K , however , since I have many open option positions which cannot be used for margin purposes , this fact brings my equity with margin value to well below the 25 K rquirement . And when I check my IB Account balance from TWS , IT still displays the # of daytrades left to use , and I'm assuming if I was allowed to day trade freely , this DT countr would probably disappear , wouldn't you say ?

Thanks

qdz · Dec 17, 2002

My friend has an alternative to answer your question. That is, just read the counter. Check if it will go down by one after you finish a daytrade. You will have an idea which balance to read into. My friend also told me the support service was not helpful at all, very problematic.

Quote from Glenn_Dude:

Thanks qdz
My account liquidation value is more than the rquired 25 K , however , since I have many open option positions which cannot be used for margin purposes , this fact brings my equity with margin value to well below the 25 K rquirement . And when I check my IB Account balance from TWS , IT still displays the # of daytrades left to use , and I'm assuming if I was allowed to day trade freely , this DT countr would probably disappear , wouldn't you say ?

Thanks

hii a_ooiioo_a · Dec 17, 2002

The NASD FAQ which IB refers you to merely says "$25,000 minimum equity". IB chooses to take the strictest interpretation of rules, so they require $25,000 equity with margin value.

IB does not count the value of stock options toward the $25,000. I don't think they count the value of nonmarginable stocks either.

When you sell your options, and the Equity With Margin Value goes back over $25,000, the daytrade counter will say "Daytrades Left: Unlimited".

qdz · Dec 17, 2002

Thanks hii.