$25,000 minimum for daytrading needs to be changed

Discussion in 'Trading' started by Nostradamus357, Jan 25, 2011.

  1. jprad

    jprad

    Not exactly.

    The Reg T rules you're referring to only apply to a cash account. If you close a trade that hasn't settled yet and you've not deposited the Reg T minimum to cover the trade you're freeriding and end up with an account that's frozen for 90 days.

    However, once the trade settles (or you've deposited funds) you can sell stock from a settled trade and use those proceeds to create another position during the same day.

    But, those Reg T rules do not apply to a margin account unless the broker, who's free to implement more restrictive margin rules than Reg T, has done so.
     
    #51     Jan 26, 2011
  2. Ok thanks for clarification. Sure, you can always use proceeds from settled trades.
     
    #52     Jan 26, 2011
  3. marceck

    marceck

    Day trading options will flag you as PDT as well. Only futures get away with it.
     
    #53     Jan 26, 2011
  4. Handle123

    Handle123

    Instead of insulting me, or making such short poor rebuttals, how about a long winded response, or didn't your parents teach you how to do this or have manners?


    America is about freedom, but that doesn't give you the right to walk down the street carrying a bazooka. The exchanges have rules, you have the option of abiding or don't play the game. You also have the option of writing to your congress, but yeah, that takes effort, easier to whine about it.

    What kind of a speedboat can you buy for several thousands dollars? You think you can make a living with a lesser boat compared to those who have larger boats?

    I don't recall the year, but remember there were three killings at brokerage houses cause the retail day traders lost their money and of course the broker made much of their losses thru commissions, I don't recall how soon after the rule came out.
     
    #54     Jan 27, 2011
    beginner66 likes this.
  5. I would love to see one of their rules get repealed. They've made way too many of them. Especially after the flash crash.
     
    #55     Jan 27, 2011
  6. The pattern day trade rule is probably determined by the capital markets subcommittee, in the House. The Republican in charge of that is Garrett (NJ) and the staffer for that committee is Scott Eckel. Email him at scott.eckel@mail.house.gov and let him know what you think about PDT. Be nice.
     
    #56     Jan 27, 2011
  7. #57     Jan 27, 2011
  8. billyjoerob, thank you sir. It's a start.
     
    #58     Jan 27, 2011
  9. spindr0

    spindr0

    ---------------------------------------------------------------
    Quote from spindr0:

    FINRA's explanation for the PDT rule was that sufficient levels
    of equity are needed to support the risk of day trading.
    ---------------------------------------------------------------

    And you want me to explain FINRA's thought process to you?
     
    #59     Jan 27, 2011
  10. spindr0

    spindr0

     
    #60     Jan 27, 2011