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
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
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.