Ib requires minimum of 25k at all time to daytrade

Thanks spark but my question which has not been asnwered by IB is what contitutes account balance. Is it net liq or cash. Like in my earlier post. If I have 25K cash and paid $1000 for 5 options which have appreciated by $500, my cash is $24,000 but my net liq is $25,500. Am I under or over. I guess the succint question is . Is net liq=acct balance or Cash=acct balance. I know SLK defines acct bal as cash and not net liq.

 

GATtrader - Net Liq. you can day trade.

 

The account balance for day trading is the equity number not the cash.

So if you have $24,000 cash and $1,500 fully paid for options.

Then you have 25,500 with regards to day trading equity.

 

Any account that places more than 3 trades in 5 days will be labeled a day trading account. Not just at IB.

If your account is under $25,000 and is labelled as day trader account. You get an equity call.

Then you will be reduced to 2-1 margin for 5 days with an equity call on the account.

If it is not met... the account is restricted. This means cash only for 90 days. You cannot day trade still or they might close your account.

This is as I understand it...

 

if you have a cash account with over 25k cash in the account,are there limits to how many trades one can do in a day;does it change if you have less than 25k cash in the account?

 

On a cash account the funds are not released until the trades settle T+3. This rule has been around a long time but was not enforced until recently (when they released the new day trding margin rules).

So your capital is tied up for 3 days.

The rule stinks bu tis not likely to change. It protects from people who would "freeride." The old margin minimums have been determined to be outdated. (too small)

 

so you're saying if all i have is $10,000 in my cash account and i make a $10,000 purchase,i'm able to sell that position the same day,but then i'm unable to make any other trades until 3 days passes?

 

$10,000.00 is a number many future firms have.
Although some have lower minimums.
www.advancedfutures.com

 

Yes... assuming you are buying stocks, which take 3 days to settle.

The money is available on the settlement date.

Now if you are buying options which take one day to settle it is another issue.

 

true qaz, yet another reason why I like options.