Max how many daytrades possible with a $50k margin account?

Discussion in 'Trading' started by trd, Oct 31, 2009.

  1. trd

    trd

    Suppose a retail daytrader has a $50k margin account,
    and let's assume its value stays above that level for the whole day.
    He wants throughout the day ideally have simultanously 5 positions open,
    each initially worth about $10k. If a position needs to be closed he closes it
    and wants to open another one.
    Now the question:
    Is there a limit (per regulations etc.) on how many total round-trip trades
    he can make on the same day?
    Ie. what happens with his DTBP when he closes a position? Will it increase back to previous levels?

    Another related question:
    what is different if that trader were an institutional daytrader?
     
  2. NoDoji

    NoDoji

    You can use up to your full buying power all day long in and out of positions. When a position is closed your buying power allocated to that position is restored.

    If you hold position(s) overnight it will tie up your bp for a day or two, as I recall.
     
  3. NoDoji

    NoDoji

    Since 99% of day traders allegedly lose money, I assume what you meant to ask here was: "What is different if that trader were an institutionalized daytrader?"

    :D
     
  4. When margin/leveraged trading, here is the fly in the ointment.