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Old Apr 27th, 2012, 11:33 AM   #1
alientrader
 
 
Join Date: Feb 2004
Location: NYC,London,Tokyo
Posts: 591
I recently withdrew some money from one of my brokerage accounts which caused it to fall below the 25k minimum for classification as day trading account.

I know that in a NPDT account, I can only conduct 3 day trades in a rolling 5 day period.

However i noticed that after reclassification my buying power remained the same,i.e. 4X buying power, not 2x.

I subsequently used this 4X BP unknowingly to conduct a day trade yesterday.

I am somewhat confused about the rules. Am I prohibited from doing this, will i suffer some kind of margin call?

Can anyone clarify?

Thanks.
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Old Apr 27th, 2012, 12:19 PM   #2
Swan Noir
 
 
Join Date: Jun 2009
Location: NYC
Posts: 2,377
I believe your 4X margin remains the same intra-day just do not get classified as a pattern day trader if you do not have the requisite capital.
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Old Apr 27th, 2012, 01:00 PM   #3
dm@cobratrading
 
 
Join Date: Feb 2011
Posts: 33
In my experience, you can still have 4x buying power in a margin account despite being below $25k. You'll just be subject to the 3 daytrades/5 days rule that you mentioned until your account gets back above $25k.

Sincerely,

Dan @ Cobra
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