PDT Rule Violation Warning While Trading Futures on IBKR?

[ph1l]

It sounds like you are trading FOPs on stocks. If you are, then section 1256 does not apply, because those are considered equity options (and the futures on them are considered "equity futures".)

Without section 1256 protection, the PDT rule will apply.

I don't make this shit up, dude.

This is from IRS form 6781. Jesus...

View attachment 347365

Welcome to 2020!

Single stock futures options are not currently available for trading in the U.S. market. The last exchange to offer single stock futures, OneChicago, ceased trading in 2020¹². As a result, both single stock futures and their options are no longer offered in the U.S. market³.

If you have any other questions or need further information, feel free to ask!

Source: Conversation with Copilot, 8/23/2024
(1) Single Stock Futures Definition, Uses, and How They Work - Investopedia. https://www.investopedia.com/articles/optioninvestor/06/singlestockfutures.asp.
(2) What to Know About Trading Futures Options | Charles Schwab. https://www.schwab.com/learn/story/trying-out-futures-options-here-are-key-differences-vs-equities.
(3) Security Futures Product | CFTC. https://www.cftc.gov/IndustryOversight/ContractsProducts/SecurityFuturesProduct/sfpoverview.html.
(4) Single Stock Futures Definition | A Derivative Contract Explained - Finbold. https://finbold.com/guide/single-stock-futures-definition/.
(5) Single Stock Future (SSF): Meaning, Risks, Benefits - Investopedia. https://www.investopedia.com/terms/s/singlestockfuture.asp.

 

[poopy]

I don't make this shit up, dude.

This is from IRS form 6781. Jesus...

View attachment 347365

1256 is an IRS reg. It is immaterial to segregation.

The Fs/FOPs he's trading are segregated -> takes his available for equities below $25K with the futures req -> sends too many equity trades -> PDT -> cleared when he closes the Fs/FOPs -> equity above $25K -> PDT resets -> you are a f*cking moron.

 

[Overnight]

Welcome to 2020!

https://www.ice.com/equity-index/single-stock

There's many a slip 'twixt the cup and the lip. I have access to the ICE as a US trader. Don't you also?

It does not matter, poopy has spoken, and called me a moron for trying to help someone.

 

[poopy]

Welcome to 2020!

Yeah, I was going to mention that he couldn't possibly be referring to SSFs, but I thought it too ignorant even accounting for the "subject matter exspurt" in question.

 

[Overnight]

Yeah, I was going to mention that he couldn't possibly be referring to SSFs, but I thought it too ignorant even accounting for the "subject matter exspurt" in question.

Sizzle my ass for trying. And last I saw in this thread, you did not answer his question.

In other words...Stop responding to ME, and respond directly to Ates why he is seeing these PDT violation messages in his e-mail account.

Can you do that?

 

[poopy]

Sizzle my ass for trying. And last I saw in this thread, you did not answer his question.

Look harder.

 

[Overnight]

Look harder.

See my updated post above you. Yes, I am on top.

 

[Drawdown Addict]

Poopy is a troll, don't even waste time

 

[Drawdown Addict]

IB does not allow you to fall into the PDT rule. They simply don't allow you to trade the 5th trade that would break the rule.

https://gdcdyn.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?formdb=3071

You are getting warnings just to let you know that if you are blocked on your 5th trade, it is because of the PDT rule, so you won't bother the support service with a useless ticket.

 

[poopy]

IB does not allow you to fall into the PDT rule. They simply don't allow you to trade the 5th trade that would break the rule.

https://gdcdyn.interactivebrokers.com/Universal/servlet/Registration_v2.formSampleView?formdb=3071

You are getting warnings just to let you know that if you are blocked on your 5th trade, it is because of the PDT rule, so you won't bother the support service with a useless ticket.

tool, doesn't explain why he's getting the warning email... which is bc of his existing futures position segregation. wheeeeee. Sucks being brilliant but I manage.