PDT question

[resinate]

Quote from def:

the rule has changed at the SEC/NYSE. if you violate the PDT you are locked out of trading for 90 days unless you bring your account above 25K. This is an SEC/NYSE rule, not IB's.

This change seems ridiculous and outright hostile to smaller traders.

 

[futuretrade]

Quote from def:

the rule has changed at the SEC/NYSE. if you violate the PDT you are locked out of trading for 90 days unless you bring your account above 25K. This is an SEC/NYSE rule, not IB's.

Hey ET,

According to PDT rules, you are only allowed to have 3 round trip day trades in a 5 day period. I believe this is PER ACCOUNT and is kept track of individually by each brokerage.

My "solution" would be to CREATE MULTIPLE ACCOUNTS AT DIFFERENT BROKERAGES. If you have 10,000 in one account, you can only day trade 3 times per week. But if you have 5 accounts at different brokerages, you could potentially trade 15 times per week, assuming each account is 2G's.

You would of course have to create margin accounts for each of them. However, I believe it would substantially help you out.

Anybody care to comment on the validity of this?

 

[tuna]

Quote from stevebec:

......was to count the 1 open/ 2 close as 2 trades.

thats bullshit thats 1 daytrade

2 opens/1 close i've seen counted as 2 daytrades tho so i guess anythings possible.

you enter a limit sell 1/2 sells the other half is left behind what are you expected to do??....sell the rest the next day to avoid pdt call??

 

[North Pesos]

Quote from def:

the rule has changed at the SEC/NYSE. if you violate the PDT you are locked out of trading for 90 days unless you bring your account above 25K. This is an SEC/NYSE rule, not IB's.

OK maybe NYSE don't want daytrader with small account, but what about Nasdaq stocks, does the earlier PDT is the same (3 trade/5 days) or if they use the same new rule than the NYSE now?