yes it does thanks alot.i think there was only 1 question that i didn't ask...say you have $20,000 cash in a MARGIN account,how often would you be able to trade that (i'm assuming you would be allowed only up to 2 to 1 leverage for day or position trades since it is below 25k)?
qazmax, thanks for explaining better than I have. < 25K you should 2:1 or 4:1 (i'm not sure these days given the recent change to allow 4:1 all the time). However, you will not be allowed to day trade. The easiest thing to do is to set up a line with your size and price. Before hitting xmit, right click on the mouse and it will tell you the margin requirment for the trade when you select the "check margin" button.
If you have $25K in your account you can either be 2-1 or 4-1. It all depends on whether or not the broker has you labelled as a "patterned day trader." The patterned day traders get 4-1, the regular account gets 2-1 If you place more than 3 trades in a 5 day window then you will automatically be labelled a patterned day trader. if you check the "patterned day trader" box on the new account form you will be labled a day trader If you specifically ask your broker (maybe in writing depending on your broke) you will be labelled a day trader.
I see this referenced a lot... is that a 'total number' or 'per equity', i.e. can I trade 3 MSFT, 3 QQQ, 3 BRCD, etc. in a five-day period and still not be labeled a 'pattern day trader? And... does the not more than 3 refer to round trips or one-way trips? Mr. Toad
You can trade one round trip of MSFT, then one round trip of QQQ, then one round trip of BRCD. If you trade one more round trip of any of these stocks (or any other stock you have heard of) in any 5 day period you better have 25K in your account or you are busted...
I just had my pointdirex account shut down because I traded way over the limit (I had only 10K in the account). I started out heeding the 4 trades per 5 business days, but then I just couldn't stand it and I probably scalped 50K shares in two days, a hundred lot at a time...and they said, "that's all folks!"
I'm just happy IB has finally come to Canada. I have heard that even for pdt you can only have 2:1 margin because of CDN regulations. Is that true def?