Many of you don't have this problem since you got more than $25,000 in your account. For accounts with less, there is some rule saying "a pattern day trader is a regulatory designation for those traders or investors that execute four or more day trades over the span of five business days using a margin account".
It's not clear to me how they label series of executions as "day trade". Open and close a position in the same day, that's clearly a day trade, but what if I buy 100 shares of stock and sell 99? Keep 1 till the next day? Am I still a day trader?
So again:
1) Buy 100 shares of stock at start of day, sell 100 shares of stock at end of day. End of day position on stock = 0 shares.
2) Buy 100 shares of stock at start of day, sell 99 shares of stock at end of day. End of day position on stock = 1 share.
Question: will both of the series of executions above be labeled as "pattern day trader" if more than 4 of them are executed over the span of 5 business days?
It's not clear to me how they label series of executions as "day trade". Open and close a position in the same day, that's clearly a day trade, but what if I buy 100 shares of stock and sell 99? Keep 1 till the next day? Am I still a day trader?
So again:
1) Buy 100 shares of stock at start of day, sell 100 shares of stock at end of day. End of day position on stock = 0 shares.
2) Buy 100 shares of stock at start of day, sell 99 shares of stock at end of day. End of day position on stock = 1 share.
Question: will both of the series of executions above be labeled as "pattern day trader" if more than 4 of them are executed over the span of 5 business days?
