"Day trade buying power call" question

Discussion in 'Trading' started by Evermore2017, Nov 1, 2019.

  1. Hi,

    I know that a margin account with PDT flag and over $25000 has a Day trading buying power of 4X, so if I have $50K the Day trade buying power is $200K.

    Help me to understand when a Day trade buying power call is generated? or How to avoid it?

    Thanks
     
  2. Example :

    Cash equity: $50K
    Buying power nonmarginable securities: $50K
    Day trading buying power(marginable securities): $200K

    Can I do this?

    >A

    -Buy $200K worth of marginable stocks, and then sell it
    -Buy again $200K, and then sell it
    -and repeat all day long unlimited trades

    >B

    -Buy $50K worth of nonmarginable stocks, and then sell it
    -Buy again $50K, and then sell it
    -and repeat all day long unlimited trades
     
  3. vanzandt

    vanzandt

    Yes to both. You can trade all day long.
    And if you want to trade options, they are non marginable, so there's a $50K limit on them also.
    Have fun.
     
    Last edited: Nov 1, 2019