Pattern Day Trader (EM) Margin Call

Discussion in 'Trading' started by privador81, Sep 23, 2008.

  1. "Pattern day traders who fail to meet their special maintenance margin calls as required within five business days from the date the margin deficiency occurs will be permitted to execute transactions only on a cash available basis for 90 days or until the
    special maintenance margin call is met."

    So you can still trade, on a lower frequency basis, and only with your account's cash balance. Average 3-4 overnight trades per week. Have to wait for trade settlements though, which takes a couple of days. Can be frustrating, this is how I got started when I began trading, but if you want to continue to trade, do it. Don't feel like you've been forced out of the markets because you can't put up the 25K. Improvise and adjust, good luck. Talk to your broker about your account features, so you know where the boundaries are.
     
    #21     Sep 24, 2008
  2. Thx for answers.
    And i dont like phrase "Traders who trade bankroll less than 25k are surely losers"
    I wanted just to test broker trading platvorms.And of course i didnt want to do deposit 25k+ just minimum.
     
    #22     Sep 24, 2008
  3. Take your own advice sometime, pal.
     
    #23     Sep 24, 2008
  4. I am currently trading with less than 25k. I daytrade 3 days out of 5 and often on the other days I take small overnight positions.

    I traded futures for 2 years and find I am just a better stock trader.

    The rules are fine, all you have to do is read and understand them.

    I will admit it can be frustrating but sometimes it works in your favor. I shorted SKF at 149 ( small position 100 shares ) and held overnight the day they announced the rules for financial shorts. I got out at 87 open the next morning. It was nice for that rule to aid my position, if I was daytrading only I would have been out 120-130 intraday.

    If you are a good and disciplined trader and have less than 25k it really should be no time till you are above the PDT minimum.

    I am purposely staying under the 25k amount as I have found it makes me more selective and currently has no adverse effect on my trading.

    Good Luck.
     
    #24     Sep 24, 2008
  5. you can switch to a canadian broker, like tdwaterhouse canada, tradefreedom, etc . As an american citizen your under canada/us tax treaty, and you will only be tax in either canada or us, whereever you are residing. Canadian brokers are not under sec jursdiction but osc rules, which does not have pattern day trading rules. you will be paying more for commission but with most brokers now like td, or tradefreedom, you will be paying 7-9 dollers a trade and 1.25 per option.

     
    #25     Sep 24, 2008