SR-NASD-00-03 The NASD, through its wholly owned subsidiary, NASD Regulation, Inc., is filing with the SEC a proposed rule change to amend NASD Rule 2520 to impose overall more stringent margin requirements for day-trading customers. The proposed rule change would: (1) Revise the definition of "pattern day trader" to include any customer who (a) the firm knows or has a reasonable basis to believe will engage in pattern day trading, or (b) day trades four or more times in five business days, unless his or her day-trading activities do not exceed 6% of his or her total trading activity for that time period;
You are considered a PDT if you make 4 or more executions within any 'rolling' 5 day period Day trades, not executions. The purchase and sale (in any order and any number of shares) of the same stock on the same day. voodoo
"Day trades, not executions. The purchase and sale (in any order and any number of shares) of the same stock on the same day." Correct Voodoo, I did mean day trades.
Pattern Day Trader. Always thought it had the taint of something tawdry, like Pattern Sex Offender, or Pattern Adulterer. OTOH maybe it does :eek:
This is part of the new NASD rule: Pattern day traders who fall below $25,000 will be permitted to execute transactions only on a cash available basis for 90 days or until the account goes back upto $25,000. This mean if you are a Pattern day traders and do not have $25,000 you can day trade all day with just your cash available. I know this for a fact and I because day trade all day with just $20,000. Tick
I was patterned a while back by Mr. Stock and am hopelessly mired in mud trying to open an IB account for the past three months, so I do some IRA "rebalancing". I offended, apparently, in a Fidelity SEP/IRA and received a letter demanding money (which you can't send if you already did this year) or threatening a 90 day suspension. I didn't know PDT rules apply to IRAs and I notice Datek hasn't yelled at me. I think I'm going to fight Fidelity on this one. Geo.