SEC $25k minimum

J

jmoore2020

Am i able to open an stock brokerage account and trade daily without using some type of margin account. For Example
if i have $5000 can i buy and sell using only that $5000 within the same day?

Does the SEC $25k minimum only apply to margin accounts? i do not want to trade on margin.
 
The rule only applies to margin accounts. However, if you aren't using a margin account you have a 3-day settlement period after you buy stock. Options settlement is 1 day, so it works better in a cash account
 
Quote from ssbc19:

if you aren't using a margin account you have a 3-day settlement period after you buy stock.
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What does that mean? Does it mean I can't sell it for 3 days?

Sorry, I'm new to this - just trying to learn things.
 
means money from a transaction isn't in your account until settlement - 3 days later.

look up "PDT rule" for more information. on the 25k minimum.
 
Thanks for the answer. But can you please tell me if I have a non-margin account, am I able to buy a stock today and sell it tomorrow? Also can I sell a stock and buy another one the next day? Or do I have to wait 3 days before I can do either one of those things?
 
Quote from azzzy:

Thanks for the answer. But can you please tell me if I have a non-margin account, am I able to buy a stock today and sell it tomorrow? Also can I sell a stock and buy another one the next day? Or do I have to wait 3 days before I can do either one of those things?
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In a cash account you can buy and sell a stock anytime you want, but the money will not be available for another trade until your first trade settles, usually 3 days. By the way, you cannot short in a cash account.
 
Quote from telozo:

In a cash account you can buy and sell a stock anytime you want, but the money will not be available for another trade until your first trade settles, usually 3 days.
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Sorry if I sound like a retard but what you just said appears to be a contradiction. You say I can buy and sell whenever but on the other hand the money is not available for another trade for 3 days. If money is not available for another trade, how can I buy a stock whenever? Can somebody answer my questions from my previous post:

if I have a non-margin account, am I able to buy a stock today and sell it tomorrow? Also can I sell a stock and buy another one the next day? Or do I have to wait 3 days before I can do either one of those things?


Quote from telozo:

By the way, you cannot short in a cash account.
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That I am aware of, thanks.
 
Quote from seadog:

If you can't work out this basic concept, what makes you think you are ready for trading?
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What makes you think I think I'm ready for trading? Can somebody just answer the question please?
 
Meaning that you can buy many times if you still have enough cash in your account during the time you wait for the previous trades that are being settled. For example, if you have $10K you can theoretically split into n amount (say 10 of $1000) then you can buy/sell 10 times during the 3 days period. But don't do that. :D

Is it gnikcuf clear?

Quote from azzzy:

You say I can buy and sell whenever but on the other hand the money is not available for another trade for 3 days. If money is not available for another trade, how can I buy a stock whenever?
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