I'm new to trading and I am wondering if anyone could tell me if the SEC counts what I would best describe as a position reversal as a day trade? Example: A trader has been long 1 share of XYZ stock for a few days and upon receiving a sell signal from her system, she places an order to sell 2 shares of XYZ changing her position from long 1 share to short 1 share and she holds the short position overnight. Would the SEC consider that a day trade?
Hi, I had a Clearing House break a trade to prevent one of my accounts from hitting the PDT rule. It should work, I was lucky my Clearing House was willing to do this, don't expect a Hail Mary like I got. The trade was only a $3.00 gain total, it was their system's fault because I was trying to buy more of the stock and hit sell!
That is not a daytrade. An overnight position was liquidated and a new one created. If you then exit the 1 share short on the same day you initiated the position that would be a daytrade.
Sorry, my brain must have been in another location, thank goodness we have great people (Stock Apprentice) who answered your question perfectly! Please forgive my stupid response.
No apology necessary I appreciated your response. While insightful, it wasn't helpful for what I was asking, but I do have it tucked away in my memory bank for future reference. Sorry for leaving you out of my thank you earlier.