changes at izone regarding day trading buying power

Discussion in 'Retail Brokers' started by birdman, Jul 8, 2008.

  1. birdman


    changes regarding Day Trade Buying Power that may impact your account. The changes, which will be effective July 11, 2008, are summarized below.

    What you need to know

    * Any account that has a margin deficiency at the start of a given trading day will not receive Day Trade Buying Power for that day. (A margin deficiency may include any of the following: maintenance calls, Regulation T calls or other more restrictive classifications on your account.)

    * Even if the margin deficiency is met during the day, Day Trade Buying Power will not be available until the following day; however, regular buying power will be available for day trading provided there are no other margin deficiencies in the account.
  2. I have daytraded on margin for over 15 years. These are the only items that seem like changes to me. I am not sure if I ever heard of a restrictive classification before, and I thought you had to have at least 25k at the start of the day or you could not daytrade at all. They seem to be saying if you fulfill the 25k during the day you can daytrade times two.
  3. birdman


    i wasn't exactly sure what they were saying and knew someone would comment ... i've traded 4xs account for intrady positions and 2xs for overnight ...

    the letter also said ...

    Please remember: Day Trade Buying Power is provided for the purpose of intra-day trading only. Positions opened using Day Trading Buying Power and held overnight may result in Regulation T or maintenance calls being issued. Since this violates day trading rules, such activities may result in your account being restricted for 90 days or more. Please review the Margin Account Handbook for more about day trading margin calls and the FINRA rules and requirements for day traders.
  4. I can only interpret that as they have been lenient in allowing people to hold overnight. I rarely hold overnight but any position that I do hold overnight is always under the normal buying power amd I would never try to hold overnight with Day Trading Buying Power.
  5. birdman


    Thanks for your comment ... that sounds reasonable to me ... i was hoping it was something along those lines:)