Pattern day trader's Margin

This is a discussion on Pattern day trader's Margin within the First Steps forums, part of the Reception category; I have a pattern day trader's account over at E-Trade, and am wondering if some of their policies are industry-wide ...

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Old Jul 28, 2009, 3:30pm   #1
 
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Pattern day trader's Margin

I have a pattern day trader's account over at E-Trade, and am wondering if some of their policies are industry-wide or unique to them. In particular, if I hold a stock overnight, my margin for the next day excludes the money used in the overnight position.
For example:
Account margin @ 3:30pm: $120,000
Buy 3000 shares @ $30 @ 3:45pm
Following day:
Sell 3000 shares @ 9:35am
Account margin @ 9:45am: < $30,000
If this is not typical behavior at another broker, I would be very appreciative if someone clued me in.

Thanks!
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Old Jul 30, 2009, 6:30am   #2
 
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You'd have to ask them but a lot of times day trading buying power can not be created by selling shares. Your normal BP would but perhaps not daytrading. Think of it this way, if first thing before the market opens they do the calculation. Thats what your DTBP is for the day.

Would need a little more info on the some other pieces though. But try giving them a call and asking them.
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