Figured this would be the best place to ask the question as I have not found an answer that I fully can understand.
By that I mean, I am not sure how one can exceed their day trading buying power when the brokerage doesn't allow the trade if you exceed your allotted buying power.
Here is an example, and maybe someone could tell me how you would generate the call.
Lets say you have $30000 in a day trading account with the standard 4x BP.
Assume you purchased $10000 worth of stock, and held it over night.
The next day your BP is $87500.
If you try to buy $90000 worth of stock, the order is rejected as you do not have enough BP. Is a call generate?
If you buy $50000 worth stock then sell $50000, buy $50000 and then sell $50000 is any call generated?
My understanding is the answer to both of those is no, but I have generated a Day Trading call and I am not sure how I managed to do so.
Thank you
By that I mean, I am not sure how one can exceed their day trading buying power when the brokerage doesn't allow the trade if you exceed your allotted buying power.
Here is an example, and maybe someone could tell me how you would generate the call.
Lets say you have $30000 in a day trading account with the standard 4x BP.
Assume you purchased $10000 worth of stock, and held it over night.
The next day your BP is $87500.
If you try to buy $90000 worth of stock, the order is rejected as you do not have enough BP. Is a call generate?
If you buy $50000 worth stock then sell $50000, buy $50000 and then sell $50000 is any call generated?
My understanding is the answer to both of those is no, but I have generated a Day Trading call and I am not sure how I managed to do so.
Thank you
