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

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

  1. 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


    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


    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?"

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