TickerHeads
Junior member
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Futures options? Nothing since they are still considered a futures product.
Pattern day trader rules apply to equity options though.
Pattern day trader rules apply to equity options though.
Hey,
If one has more than US$25K in his/her account, then the rule of no more than three daily roundtrips in a rolling five-business day period is waived. One can trade as many roundtrips per day as he/she desires (or is able).
Is this a true statement?
Thanks,
Jeff
If one has more than US$25K in his/her account, then the rule of no more than three daily roundtrips in a rolling five-business day period is waived. One can trade as many roundtrips per day as he/she desires (or is able).
Is this a true statement?
Thanks,
Jeff
MainePastor
Newbie
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$25K Means You're Exempt
Yes, if you have > $25K you may trade as much as you wish (as long as your broker allows it). HOWEVER, if your balance at the end of the day ever goes under $25K, you will be restricted to closing transations only (if you have anything open overnight). If you have no position and you're under $25K, you cannot trade AT ALL (with my broker at least) -- not even "cash" trades -- until you deposit money to get back over $25K if you have a "pattern daytrading account" (you've done >3 daily round trips in a 5-day rolling cycle).
Yes, if you have > $25K you may trade as much as you wish (as long as your broker allows it). HOWEVER, if your balance at the end of the day ever goes under $25K, you will be restricted to closing transations only (if you have anything open overnight). If you have no position and you're under $25K, you cannot trade AT ALL (with my broker at least) -- not even "cash" trades -- until you deposit money to get back over $25K if you have a "pattern daytrading account" (you've done >3 daily round trips in a 5-day rolling cycle).
rgsharp
Active member
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Pattern Day Trading:
The SEC defines a day trade as any trade that is opened and closed within the same trading day. They define pattern day trading as 4 or more day trades within 5 trading days. This means that even one trade per day would classify the trader as a pattern day trader, and the restrictions would then apply.
Preventing Day Trading:
If a trader is classified as a pattern day trader according to the SEC definition, and the trader does not have the required $25,000 deposit, their trading account will be frozen for 90 days. Once this happens, the trader will either have to deposit enough equity to bring their trading account up to the $25,000 limit, or wait until the 90 day hold has expired.
Other Markets:
Initially, the day trading restrictions appear to prevent day trading completely, but the restrictions only apply to US stock markets. The US futures and currency markets can be day traded without any restrictions or minimum deposits (except the exchange margin requirements), so there are still plenty of markets available for day trading, and many of these markets are better suited for day trading anyway.
Or avoid all this by moving to the UK lol.
The SEC defines a day trade as any trade that is opened and closed within the same trading day. They define pattern day trading as 4 or more day trades within 5 trading days. This means that even one trade per day would classify the trader as a pattern day trader, and the restrictions would then apply.
Preventing Day Trading:
If a trader is classified as a pattern day trader according to the SEC definition, and the trader does not have the required $25,000 deposit, their trading account will be frozen for 90 days. Once this happens, the trader will either have to deposit enough equity to bring their trading account up to the $25,000 limit, or wait until the 90 day hold has expired.
Other Markets:
Initially, the day trading restrictions appear to prevent day trading completely, but the restrictions only apply to US stock markets. The US futures and currency markets can be day traded without any restrictions or minimum deposits (except the exchange margin requirements), so there are still plenty of markets available for day trading, and many of these markets are better suited for day trading anyway.
Or avoid all this by moving to the UK lol.
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