how are option spread day-trade counted?

Discussion in 'Options' started by may916us, Feb 10, 2022.

  1. may916us

    may916us

    If you open a four-leg spread and close it on the same day. Some brokers count as 1 day-trade, and some as 4 day-trade. Why? I thought the rule is from the exchange authority, not from the individual brokers.
     
  2. Robert Morse

    Robert Morse Sponsor

    When you enter a spread order, it goes out as one order. When executed, it is a number of single legs after. Closing any leg that day counts as a day trade. Closing a 4 legged spread would be 4 day trades.