New Restrictions for trading accounts

Discussion in 'Trading' started by tradeplay, Oct 1, 2003.

  1. I recently read on another message board that there are new trading restrictions that will become effective in the next 30 to 60 days. Specifically, they will be addressing the 4 daytrades in 5 days rule. It is a big disadvantage when you hold a stock overnite just to avoid a day-trade round trip rather than take a quick profit. I think the spirit of the regulations is hurting rather than protecting smaller account holders.
     
  2. VTTrader

    VTTrader

    I'd like to see a link, too. A quick Google search didn't turn up any new restrictions ('pattern day trader' were my keywords), just the usual 2001 definition per the SEC....
     
  3. The current PDT rules apply to cash accounts. The rules are changing for margin accounts with less than $25K. This is according to Schwab and E trade.
     
  4. Read the message board on Yahoo finance for Schwab (SCH). There's quite a long discussion on it.
     
  5. Begin with message 52511
     
  6. The purpose of my post was just to see if anyone else had heard about the changes. I told where I read it. It's up to you to either consider it or ignore. I don't need to "back up."
     
  7. VTTrader

    VTTrader

    But the SEC already requires a PDT to maintain $25K in a margin account. What, exactly, is supposed to be changing?

    As was said elsewhere here, either you are a PDT or you aren't.
     
  8. Ebo, whats your problem?
     
  9. I'll try and make this simple. The new rule is if you violate the current PDT restrictions, you cannot BUY another security in that account for 90 days.
     

  10. hey don't badmouth yahoo!...look at what it did for MR Market!!:D
     
    #10     Oct 1, 2003