Once in a while, you can daytrade without a daytrading account?

Discussion in 'Trading' started by crgarcia, Oct 24, 2007.

  1. Sometimes I have opened and closed trades, mainly index ETFs in the very same day.

    Yet I dont have a daytrading account.

    Perhaps my broker, optionsxpress, allows daytrading if done once in a while?

    Or OX automatically allows daytrading on all accounts over 25k?
  2. Pattern daytrading is placing 5+ daytrades per day, so just one trade doesn't count?
  3. kbehr


    Beg to differ....Pattern Day Trading is defined as placing 4 or more day trades within 5 business day period.
  4. mekas


    From NASD Rule 2520:

    i) The term “day trading” means the purchasing and selling or the selling and purchasing of the same security on the same day in a margin account except for:

    a. a long security position held overnight and sold the next day prior to any new purchase of the same security, or

    b. a short security position held overnight and purchased the next day prior to any new sale of the same security.

    (ii) The term “pattern day trader” means any customer who executes four or more day trades within five business days. However, if the number of day trades is 6% or less of total trades for the five business day period, the customer will not be considered a pattern day trader and the special requirements under paragraph (f)(8)(B)(iv) of this Rule will not apply. In the event that the organization at which a customer seeks to open an account or to resume day trading knows or has a reasonable basis to believe that the customer will engage in pattern day trading, then the special requirements under paragraph (f)(8)(B)(iv) of this Rule will apply.
  5. mekas


    You have a margin account with an equity of at least $25k?
    That is what's basically required to "daytrade".
  6. The 25k rule, as I understand, only applies to day trading stocks. That's why ppl. go to prop firms most often, so they can get leverage and put down less than 25k to day trade stocks.
  7. razor99


    exactly. that pattern daytrade rule is a joke and the sec put it in place because daytrading was a hot topic in 2000 when the market crashed. who lost morey, a daytrader or a guy that kept averaging down on CIEN, JDSU,INTC, and CSCO ? its a joke,.
  8. Futures, forex are safe right? And I thought it was for 1 business day. 5 this is ridiculous.
  9. mekas


    From: patterndaytrading.com:

    "The pattern day trader rule applies to all brokers in the United States who are NASD members. There may be foreign brokers who are not directly regulated by NASD and offer pattern day trading to clients with less than $25,000 in their account.

    This rule only applies to stock and option trading. There is no pattern day trading rule regulations currently on futures or forex."