Pattern day trader's Margin

gmsnacks · Jul 28, 2009, 10:30am

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!

Tradesurfer · Jul 30, 2009, 1:30am

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.

Jul 28, 2009, 10:30am	#1
gmsnacks Newbie Member Since Jul 2009 3 Posts	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!

Jul 30, 2009, 1:30am	#2
Tradesurfer Rookie Member Since May 2009 11 Posts	Re: Pattern day trader's Margin 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. __________________ Derek Moore

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