What's considered as 1 daytrade at Interactive Brokers?

realtrades

realtrades

Hello, I was looking for examples of what Interactive Brokers considers as a single day trades or multiple day trades, for example:

I see Robinhood shows: Buy, Buy, Buy, then Sell, Sell, Sell intra-day = 1 day trade

https://robinhood.com/us/en/support/articles/pattern-day-trading/


But @ Speedtrader that would qualify as 3 day trades as their example shows:

If you scale into a 900 share long position by executing three separate 300 share buy trade orders, this doesn’t qualify as a round trip. However, if you can close out the trade by selling 300 shares a piece with three separate sell orders, it would qualify as three round trip trades. In this situation, it would be best to close out all 900 shares in a single closing trade if executed on the same day. This would qualify as a single round trip, instead of three.

https://robinhood.com/us/en/support/articles/pattern-day-trading/


Does someone know how IB defines a day trade when scaling in/out of trades? Thank you.
 
realtrades said:
Thank you for that, so I see they mention a buy, buy then sell all is considered as 1 day trade, I wish they gave an example of scaling in then out, like buying in 3 lots then selling in 3 lots, I guess I will ask them via chat or email, thanks again.
More...
%%
Good idea ;
IBKR algo prevents the 4th opening trade in a 5 day period.Noon is over halfway in time + usually price also...……………………………………………………………………………...
 
Got in touch with chat, said: each closing trade, if entered through multiple lots would each count as 1 day trade:

buy, buy, buy, then sell all in 3 lots, sell, sell, sell = 3 day trades
buy, buy, buy, then sell all in 2 lots, sell sell = 2 day trades
buy, buy, buy, then sell all in one lot = 1 day trade

To keep it simple: multiple entries, one exit = 1 day trade or multiple exits from one entry = 1 day trade.
 
You must log in or register to reply here.
Back
Top