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Question about margin...
- Thread starter dayraider
- Start date
Very likely no margin charges. I can't say with 100% certainty. It depends on what clearing firm your broker uses. Ask your broker.
dayraider,
If I Buy 1000 shares of XYZ @50 (9:30am)and Sell 1000 Shares of XYZ @ 51(4:00PM-or until ECN close at 8PM). This transaction should be treated as "same day substitution "by SRO and NASD rules. You should get all the buying power back at the end of the day. However, some discount brokers may not update their systems real-time or may have trade settlement issues. At
LWS and other direct access firms, say day substitution rules will apply. Please call your introducing broker and ask their policies regarding daytrading & same day substitution.
Gene Weissman
Lieber & Weissman Sec., L.L.C.
gweissman@stocktrade.net
If I Buy 1000 shares of XYZ @50 (9:30am)and Sell 1000 Shares of XYZ @ 51(4:00PM-or until ECN close at 8PM). This transaction should be treated as "same day substitution "by SRO and NASD rules. You should get all the buying power back at the end of the day. However, some discount brokers may not update their systems real-time or may have trade settlement issues. At
LWS and other direct access firms, say day substitution rules will apply. Please call your introducing broker and ask their policies regarding daytrading & same day substitution.
Gene Weissman
Lieber & Weissman Sec., L.L.C.
gweissman@stocktrade.net
dayraider,
Overnight margin in a customer account is 2 to 1. If I own 1000 shares of stock at 50 , I would be required to keep $25,000
in my account. Pattern Daytrader margin in a customer account has been increased to 4 to 1. A pattern daytrader must maintain a $25,000 account. A pattern daytrader is defined as trader who
daytrades 4 or more times in a given week and these four trades
constitute more than 6% of his/her total trades for that week. The
4 to 1 margin is the max allowed for the pattern daytrader in a customer account, individual brokerages do not have to allow 4 to 1 daytrader margin, if they do not want to.
In a trading L.L.C. that is not a member of the NASD, overnight
margin is determined by the firm. There is a max margin allowed
for the firm under SRO and SEC rules, but this is too complex to go into. For individual trading members of our L.L.C. , we allow 5 to 1 overnight(in liquid NASDAQ 100 stocks & S & P 500 stocks) ,
with no more than 3 to 1 margin in one stock . L.L.C. margin is only available to Series 7 licensed traders who understand the risks associated with professional margin.
Gene Weissman
Lieber & Weissman Sec., L.L.C.
gweissman@stocktrade.net
Overnight margin in a customer account is 2 to 1. If I own 1000 shares of stock at 50 , I would be required to keep $25,000
in my account. Pattern Daytrader margin in a customer account has been increased to 4 to 1. A pattern daytrader must maintain a $25,000 account. A pattern daytrader is defined as trader who
daytrades 4 or more times in a given week and these four trades
constitute more than 6% of his/her total trades for that week. The
4 to 1 margin is the max allowed for the pattern daytrader in a customer account, individual brokerages do not have to allow 4 to 1 daytrader margin, if they do not want to.
In a trading L.L.C. that is not a member of the NASD, overnight
margin is determined by the firm. There is a max margin allowed
for the firm under SRO and SEC rules, but this is too complex to go into. For individual trading members of our L.L.C. , we allow 5 to 1 overnight(in liquid NASDAQ 100 stocks & S & P 500 stocks) ,
with no more than 3 to 1 margin in one stock . L.L.C. margin is only available to Series 7 licensed traders who understand the risks associated with professional margin.
Gene Weissman
Lieber & Weissman Sec., L.L.C.
gweissman@stocktrade.net