day trading buying power help

Discussion in 'Professional Trading' started by IceTea92, May 18, 2007.

  1. IceTea92

    IceTea92

    need some help on the rules

    here is the situation

    say an account has 30K in cash equity

    normally one has 120K in day trading buying power

    say u take overnight 200 shares of stock ABC at $90
    so u end the day with $12000 cash and $18000 of positions

    so your day trading buying power for tomorrow is

    [30000 - (18000*.25)] * 4 = 25500 * 4 = 102000

    but this is where im confused
    is if you want to trade stock ABC tomorrow

    so if you sell the 200 shares in the morning, is your dtbp now (102000 - 18000) = 84000 or does it remain 102000?

    is it only 102K as long as you are long 200 ABC?

    also should you initially sell your overnight position before you buy more (daytrade ABC the following day)?
    how does buying 200 shares in morning (total 400) affect your bp?