Limit of trades per day with cash account? - cash day
If you pay to trade in an account in cash commissions for each normal trade, then in theory you can buy and sell the same guarantee of 10 times a day if I want? Make the day of the trade rules that do not exceed 4 per week applies to the margin trading or trading with a cash account base as well? Thank you.
Friday, January 22, 2010
Cash Day Limit Of Trades Per Day With Cash Account?
Subscribe to:
Post Comments (Atom)
2 comments:
No, you can not.
If 4 or more of all business transactions within 5 days of consecutive days is classified as a Pattern Day Trader. At this point you should have a margin account and maintain a minimum amount of $ 25,000.00. It is a legal obligation. Your agent can not make exceptions.
Moreover, in a cash account if you try to do much trading, settlement, the T 3 time comes into play. This means that if you have a stock that takes 3 days to sell the trade agreement. You can use the proceeds to buy another share. But you can not sell this new acquisition of the first sale is settled. (T 3 applies to the purchase, but not so important for the buyer.)
Interesting;
The height of the measures depends on you, as you see on the market. Yes, you can overtrade, however, is a personal decision.
All transactions are cash on your account balance, net of trading commissions. A good general rule is no longer trading
The 2% of balance, because the economic risks in the balance of your account.
Hope this helps.
Post a Comment