Pattern Day Trader IB

Discussion in 'Retail Brokers' started by Gustaf, Jun 27, 2006.

  1. Gustaf


    Hi i got this email sent from IB yesterday seems like I did to many trades. Whats the next step? Account reset or?
    I though TWS would prevent this from happening?

    "Because your account falls within the definition of a "Pattern Day Trader"
    under the NYSE and NASD rules, the required minimum equity in the securities
    segment of your IB Universal Account is $25,000. You will not be able to place
    further securities trades until $25,000 equity is available in the securities
    segment. If necessary, please deposit additional funds to cover the requirement."
  2. ddunbar

    ddunbar Guest

  3. Gustaf


    Thx, any idea how this could occur using TWS? I thaught it would prevent this.
  4. MTE


    Why would a trading platform prevent you from this? If you hit a PDT rule then you have an option to deposit more money.
  5. well, as far as i know it does..reps told me there's a protection in place; a pop up tells u that if u send the order u will be classified as a pdt...up to ya then, innit.

    cant figure out how on earth some1 is supposed to trade with that freakin' limitation in place, even if u are a swing trader.
  6. ddunbar

    ddunbar Guest

    I looked in the literature and there doesn't appear to be anyway to safegurad against this than to monitor day trades left in the account window. Don't see anywhere on TWS alert feature where you could warn yourself that you're approaching PDT limit.

    Maybe someone else might know of something. But I don't see why the software would prevent PDT.
  7. again, as i said before a pop up comes up as soon as u attempt to send the 4th order for the week, tellin' u that if u carry on u'll be classified as pdt.

    maybe ib-reps can come here and clarify.
  8. Gustaf


    I didnt see any popups.
    However its entirely MY fault and I dont blaim anyone, iam very pleased with IB.

    I managed to raise $20k extra so looks like i can resolve this..

  9. Gustaf


  10. ddunbar

    ddunbar Guest

    OK, so they have a server side safeguard.

    But it doesn't look like they have an intraday safeguard. Might explain why you didn't get a pop-up like Bitstream said.

    "If the intraday situation occurs, the customer will immediately be prohibited from initiating any new positions. Customers should be able to close any existing positions in his account, but will not be allowed to initiate any new positions."

    Found on same link above, FAQ #3.
    #10     Jun 27, 2006