Day Trading US Margin Account


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I have a strategy for day trading US stocks but it’s not clear to me exactly how margin accounts work when considering settlement and free-riding.

If I fund a margin account with $150000 then I’d expect my day trading buying power to be $500000 i.e. 4 times the maintenance margin excess (4 * (150000 – 25000)).

I then buy 500 shares of a $150 stock i.e. a $75000 position and a short time later, realising the trade is not working out, sell them at my entry price. I’m going to receive $75000 for the sale but when does that money become available to me for further trading?

Is it available immediately i.e. I can repeat this process indefinitely throughout the trading day?


Am I eroding my buying power each time I trade?
After first trade, buying power is $500000 - $75000 => $425000
After second trade, buying power is $425000 - $75000 = > $350000…
And so on until you exhaust your buying power for the day.

If you are trading a margin account on US instruments, maybe you could let me know how it works.

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