Basic PDT Question

Discussion in 'Order Execution' started by electron, Aug 27, 2003.

  1. badcat

    badcat

    Thought I would put my two cents worth. I trade with them and have found them ok. They charge no commissions but have wider spreads on stocks and futures eg. es has two tick spread and stocks have 5 cent spread. Margins are 3%. Hope this helps.
     
    #11     Aug 27, 2003

  2. Yes CFD'S are highly leveraged but I wouldnt recommend using the full margin available,margin is a double edged sword.
     
    #12     Aug 27, 2003
  3. If deal4free arent taking new accounts there are a few different companys that trade CFD'S- GNI,MAN FIN,IG,ETRADE
     
    #13     Aug 27, 2003
  4. RAMOUTAR

    RAMOUTAR

    You raise a very interesting question. As I understand the PDT rule, it specifically states "four round trips in any five business day period". I'll make a few calls since I would like to confirm this for myself as well.
     
    #14     Aug 27, 2003
  5. Here is their answer:

    'Dear Trader,

    Day trading refers to buying then selling or selling short then buying
    the
    same security on the same day. Just purchasing a security, without
    selling
    it later that same day, would not be considered a day trade. So,
    buying a
    stock or option today, then selling it the following day would not
    affect
    the Day Trades Left count, nor would establishing a pttern of this
    behavior.'

    Hope this helps.
     
    #15     Aug 28, 2003