Daytrading: Not Following the Rules?

[NLTInvestor]

Wondering what happens if you just place trades and you don't have 25k?

Will you be penalized? I'm wondering because I have 500 free trades just for 60 days and I might as well day trade so I can use all my free trades

 

[copa8]

Wondering what happens if you just place trades and you don't have 25k?

Will you be penalized? I'm wondering because I have 500 free trades just for 60 days and I might as well day trade so I can use all my free trades

i think you only get about 3 or 4 round-trip trades per 5 business day. if you break the rule, i think your account gets frozen for 90 days or until it's balance is over $25k.

 

[timsk]

Hi NTL,
The $25k day trading rule applies to direct market access (DMA) equities brokers. If you're not trading equities and/or you're not using a DMA broker, then this rule probably won't apply to you.
Tim.