I recently withdrew some money from one of my brokerage accounts which caused it to fall below the 25k minimum for classification as day trading account.
I know that in a NPDT account, I can only conduct 3 day trades in a rolling 5 day period.
However i noticed that after reclassification my buying power remained the same,i.e. 4X buying power, not 2x.
I subsequently used this 4X BP unknowingly to conduct a day trade yesterday.
I am somewhat confused about the rules. Am I prohibited from doing this, will i suffer some kind of margin call?
Can anyone clarify?
I believe your 4X margin remains the same intra-day just do not get classified as a pattern day trader if you do not have the requisite capital.