Questions on Day Trading!

M

mjttjm

Hi there. I have some questions... wondering if anyone here can help :D

1. On a Margin account, how is one able to buy/sell repeatedly within the Daytime Buying Power in regards to settlement dates? How does the broker continuously provide more money?

2. If I have an account total of $100k of cash: I buy $200k of a security before a day's close (ie. Monday) and hold it overnight, then sell the $200k (assuming no fluctuations in value) the following day (Tuesday)... what is my buying power for Tuesday?

Thanks!
 
#1. You can, I would not worry about the process. Not your problem.
#2. $0. You get back you BP Wednesday, BP is only set overnight. You can never have more than you had at the start of day,
 
Robert Morse said:
#1. You can, I would not worry about the process. Not your problem.
#2. $0. You get back you BP Wednesday, BP is only set overnight. You can never have more than you had at the start of day,
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Thank you Robert. It was informative.
What if I have an account total of $100k of cash BP set to 4:1 intraday and 2:1 overnight: I buy $50k of a security before a day's close (ie. Monday) and hold it overnight, then sell the $50k (assuming no fluctuations in value) the following day (Tuesday)... what is my buying power for Tuesday?
 
Robert Morse said:
It can never exceed what you had Tuesday morning. If you had DT BP of $200K that morning, and liquidate, you still have $200K until the next day, then $400K wednesday.
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Got it thanks.BP is decided over night.No mater if position is squared off during a day. The funds released during day will only add to BP next day.
 
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