I have found an Option strategy that I would like to trade, unfortunately this will put me over the PDT limit. Since IBs website seem to be unavailable/old Sites are up, I thought I ask here, so please indulge me. If I fund the account with 25k, I presume nothing of that 25k will be eligible for trading since margin excess (total equity-25k pdt mm) would be 0 correct? Would I be able to excecute trades? Or will IB block me from excecuting these trades alltogether? If the former is true, can I get as many daytrading margin calls I want as long as the margin at the end of the day is above the 25K? What Leverage does IB give on margin excess? Does it apply to all Assets equally? I want to trade a defined risk options strategy on russel2000.
PDT isn’t related to margin, so no one will use your margin for the PDT. You can trade as much as you want. PDT is just a counter and when the counter reaches 4 trades in a week (exceeding the allowed 3) and you don’t have $25K total in stocks and cash in your account then you get locked out of trading for 90 days, or until you get back to $25k.
I, too, have recently started to come across approaches or strategies that are a little bit out of the ordinary and require you to apply non-standard settings and other things that do not allow you to use it in its original form. In my opinion, this is some new trend, which emerged precisely because the market is undergoing quite serious changes and it is now people are in the process of looking for the best conditions and services to help them cope with all these moments. But on the other hand, it can be quite difficult, because it all requires a lot of knowledge and experience. But I think that a person can deal with any questions if they want to.