hello member's there is some question 1 - if i have a cash account can i trade as many trades every day i want every day with waiting for T+3 settlement in cash account.( margin disapled ) 2- does old 2:1 margin work to accounts below 25000$. 3- can i short sell if rule 2:1 work can any one help me and if a broker does this thanks alot rafat
Shouldn't that be No, Yes, and Yes? You can't daytrade in a cash account. Accounts below 25k still get the 2:1 intraday and overnight margin. If you have a margin account than you can short. voodoo
Shouldn't that be No, Yes, and Yes? You can't daytrade in a cash account. Accounts below 25k still get the 2:1 intraday and overnight margin. If you have a margin account than you can short. I think the misunderstanding here is that rafat titled the thread "cash account" and was presumably only referring to them, not margin accounts. In that case, DATTrader was accurate and the answers are No, No, and No.
rafat, 1. Yes. If you have a cash account you can trade as many trades every day you want while waiting for T+3. (Although not all brokers allow daytrading in a cash account. They are free to do so.) 2. There's no margin for cash accounts. For margin accounts below 25k, the 2:1 margin remains. Datek even gives 4:1 margin to all margin accounts. 3. you can't short in cash account, but you can short in any margin account. Fohat
All brokers are using T+3 for settlements for cash accounts. (Datek, Cyber, IB, MB etc.) Quit trying to make an "end run" 'round the regs, their play book's got it covered. Bucky Lee
there should be a better way to manage all this. i've seen so many posts asking about cash rules, margin rules, pattern day trader rules. this is becoming a big mess just like our tax returns.
Bucky Lee, One can daytrade in a cash account and settle T+3. The rules allow that, no rule prohibits it. Fohat
Fohat, Theoretically maybe they can do what you suggest, but is this what they are doing.... Answer: NO. They aren't permitting realtime instantly updated buying power in cash accounts. Bucky Lee
Bucky, Yes they do permit, or at least did permit, IB's Def said they stoped it since new Daytrading rule came out, I'm not clear why. But since they used to allow it, T+3 and Regulation T was NOT a problem, I cannot imagine why it would suddenly become a problem. Nothing in a new 25K rulling says about new interpretation of old rules. Bob