PDT in IRA cash account <25k

[graz]

Hey OP no disrespect to your craft. Day trading can be fun, but the more you play the more chances you have to lose.

solid longs can beat many quick scalps just my 2cents.

I agree. Definitely. I'm going to have a mixture. No scalping though. The settlement period doesn't bother me nearly as much as the PDT rule.

Thanks for your help.

 

[systematictrader]

I searched this thread and IB's website and still have not found the answer.

I recently opened an IRA Margin Account with IBKR LITE and just downgraded it to a Cash Account. With an IB IRA Cash Account under 25k, can I day trade as often as I like? Generally the PDT rule doesn't apply to cash accounts under 25k but is it different with an IRA or with IB/IB Lite? (I'm aware of the T+2 settlement.)

Because, in the process of downgrading, the support ticket said, even in an IRA cash account under 25k, I'm still subject to the PDT rule. What's true? Thanks.

https://finance.zacks.com/rules-trading-stocks-ira-account-4427.html

No Free Riding
A stock trade takes three business days to become official, or "settle." When you sell stock, the cash is not officially in your account until the settlement date three days later. You can buy stock with unsettled cash, but if you sell that stock before the original trade settles, you are guilty of violating the Federal Reserve Board's Regulation T, commonly called free riding, on the cash that is not yet yours.

Free riding is not allowed in cash or IRA accounts. The result of the free riding rule is that you cannot effectively trade short-term – less than three-day holding period – in an IRA account.

Additionally if you think you see a loophole, it probably can't be done. That's where the REAL money is made.

What about synthetic loophole?? such as trade options and close the position via an near identical options, and or use put call parity format/formula and so on and on to "virtually" close out your position, more commissions so, but doable?? i used to know someone who i think used to do it this way

 

[aWorkInProgress]

My interest in a Day Trading account is for Swingtrading with an initial stop loss order. Maybe I have this wrong but, recently Swing trades are reaching a sell point or drop in days. It is recommended (by myself and the service I use) to always utilize a Stop Loss order. The inevitable result is a 'Day Trade' often due to a quick stop out.
This concern got me here looking for an out via a Cash Account. If I read it correctly a Cash Account will restrict trading rather than let me hit a PDT alert.
Correct?

 

[aWorkInProgress]

an update:
Since my account is a cash account, as long as there is ample cash balance to cover my trades the PDT rule will not apply. I was looking for confirmation and this works. Question closed.