Is the PDT rule applicable to options trading too? Can they hit you with PDT if you scalp on the intraday moves? Thanks! http://www.investorwords.com/5711/pattern_day_trader.html http://www.sec.gov/answers/daytrading.htm
Yes... all equity stock markets included in $25k minimum. That's why option markets dried up considerably (since recovered) when these rules went into effect even as emini futures markets swelled.
Can you avoid PDT if you hold the position overnight? I don't have problem with the $25k min but my broker locks up my uninvested cash in margin and gets an interest free loan from me if I get hit with PDT.
If you turn x-amount of intraday trades inside y-amount of sessions, "patterned" day trader status is assigned and the account is locked up unless/until $25k minimum balance exists. That is equally true for NYSE and Nasdaq, along with option exchanges. Not true for CME or CBOT equity index futures... they are (wisely?) exempt.
yes you can avoid PDT by holding overnight..also you can have your account "reset" once back to normal if you end up going over the allowed number of daytrades
My problem also,but in reality has slowed me down,made me more selective,done away with my scalps.Slowly building to 25k with nickles and dimes.I swing smaller size unless I get bigger intraday moveTthe rule has actually helped me.