I have an account at IB that was flagged PDT. They tell me that once it is flagged it can not be converted back to a regular account Is this true.
"An SEC designation applying to any individual who buys and sells a particular security in the same trading day at least four times in a five-day period, and for whom same-day trades make up at least 6% of the trader's activity during that period. Pattern day traders are subject to special rules. " You need at least 25k in your account to get around this....so since your flagged, i assume its basically like a margin call for 25k
Switch to trading the ES, ER2, YM, NQ, tell the NYSE to take a walk..... Futures are where it's at....
See here: http://www.interactivebrokers.com/en/trading/marginRequirements/patternDayTraders.php?ib_entity=llc From what they say you should be blocked from making that fourth trade that would get you flagged as a daytrader. Is that what you're referring to? Or did you find some way around their block and trigger it? Remember, this isn't an IB rule this is an SEC rule you can't get around it.... SSB
you can get it removed once every 180, if you tell them it was a mistake. but the next time you get flag no more love.... http://www.interactivebrokers.com/en/trading/marginRequirements/patternDayTraders.php?ib_entity=llc
Here's the thing ! I used to use this account in the past but now I want to just trade options in it but they won't let me trade anything because it only has 24 k in it. This is the stupidest thing I have ever seen. So now I have to close this account and open a whole new one ? Why not just say that unless an account has over 25k it can daytrade but under it can not?
This site explains that rule: www.patterndaytraderrule.com The rule applies to stock and option trading.
I'm still here. From time to time I still throw my 2 cents in (which is worth only about 1 cent). lol