Daytrading and the 3 days to settle rule?

Discussion in 'Trading' started by lsayre, Jun 4, 2005.

  1. lsayre

    lsayre

    Speaking strictly of straight up stock trading, has the rule demanding that funds be tied up by the broker for 3 days while "settling" effectively killed equity daytrading in the USA? If not, then how do you guys and gals get around this barrier?
     
  2. As far as I know nothing has changed with T + 3. This only applies to cash accounts. As long as one is trading equities in a margin account T + 3 does not apply (someone correct me if I'm wrong)....

    -Guru
     
  3. da-net

    da-net

    You are correct. Some firms use to allow the cash account trader to use the funds next business day, but recently (according to Rushtrade) the NASD has started taking action against firms doing this.

    It seems they (NASD) want everyone using cash accounts subject to their margin rules or perhaps they want to allow the use of the funds float....just speculation of course