So if i have $20,000 in my margin account,i assume i only get 2 to 1 leverage for day or overnight trades.So if i make 3 40k daytrades on Monday,i have to wait until the following Monday to trade again?
Many people had to consolidate accounts they did not want to consolidate just to meet this criteria. Some traded options at one broker and stock at another. Others just quit trading... not fair to the little client. Not fair to the brokers who lost busness. It is a good idea to revamp the rules... but not to force away business, especially in these dry times. Someone with 25K in one account is OK to do as she pleases, and someone with 4 accounts with 20K cannot meet the criteria.
"As of tomorrow, all accounts with over 25K in equity will receive 4:1 margin all the time." -DEF, IB News Thread
Def does this pertain to overnight margin? Can you carry 4-1 overnight at IB? "As of tomorrow, all accounts with over 25K in equity will receive 4:1 margin all the time." -DEF, IB News Thread
The PDT rule, although well intentioned, is a bad rule. A trader that attempts to enter a stock and gets stopped out 3 times because he has good money management skills, is being penalized. There is a correlation to success and account size, but whose to say, on an individual basis, that one trader is superior to another based solely on the size of his/her account. Why don't they just let you pass a test? The SEC continues to pick on the little guy, while the real crooks go free.
Everyone OK with their options margin? Does anyone know where you can post for jobs (as in... looking for one) on this website?