IB - daytrading rules

Discussion in 'Interactive Brokers' started by manfred, Apr 16, 2002.

  1. manfred

    manfred

    Hi,
    I´m new to IB and have the following questions.
    I have made two daytrades (account under $25´) yesterday and opened another position today. So, what if I´m opening another position today and both stocks fall under my stops. Will only one order be filled or both (that would be 4 daytrades in two days) ?
    Is it also "counted" as a daytrade when I´m closing a position and reenter on that day ?
    Are two partial sells also counted as two daytrades ?
    Thanks in advance,
    Manfred
     
  2. kojak

    kojak

    From IB website:

    Consistent with the new margin rules, if an IB customer's margin account falls under $25,000 and the customer has day-traded three times within five days, the customer will not be allowed to open new positions until the $25,000 requirement is restored, or the five days have elapsed. A day-trade is defined as the purchasing and selling of the same security on the same day.

    If you have less than $25,000 equity in your account, you will receive a message that you may not affect another trade until (i) your account contains at least $25,000 in equity or (ii) the five day period has elapsed, and your order will be rejected.

    If I buy 200 shares of a stock and then sell 100 shares of that same stock on the same day, even though I have not closed the position, is that a day trade?
    Yes, it is a day trade to the extent of 100 shares.


    If I buy 200 shares of a stock and then sell 100 shares of it on the same day, then an hour later I sell the remaining 100 shares, is that counted as one day trade or two day trades?
    That is counted as ONE day-trade.