Question about day trading options

R

rpr

Hi,

My question deals with being defined as a 'pattern day trader' and being subject to the minimum account balance of 25k rule.

If I made a complete 'round trip' trade on 4 consecutive days, buying and selling a call or put option, would I then be subject to the rule mentioned above? Does that rule only apply to traders trading in a margin account? I will be staying cash only.

Thank you for your time and help.
 
Quote from joeyata1:

i'm not 100% sure but i think ib enforces the day trading rules on options. i'm not sure with other brokers
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Right. I have checked that myself with IB some time ago.
 
Right, options do count as the rule is for any security. Where i find the confusion is whether the rule is only applied to margin accounts only and not cash accounts.
 
Quote from rpr:

Right, options do count as the rule is for any security. Where i find the confusion is whether the rule is only applied to margin accounts only and not cash accounts.
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Both.
 
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