5. Why do some people support the PDT rules? Besides those who benefit directly from the PDT rule, there are however some people support the PDT rules. They are not beneficiary, at least not directly. They merely want to see small investors screwed. That's there key edge to be successful in the market which is to be inhuman.
6. What are the manipulators endorsed the PDT rules? A: Manipulators like low volume and concentrated transactions. They like 1 offer/bid of 1000 shares at one price more than 10 offer/bid of 100 shares at ten price. Further by eliminating the freedom right of enter/exit the market of some participate using PDT rules, manipulators are at their will. Low volume manipulator is my example to keep this thread on top at low volume hours on ET.
OK , so I'm totally confused about this subject . Can anyone help me with this ? I asked IB help to tell me which one applies , and , as usual they referred me to NASD website to read about it & they wouldn't explain . And after reading the official website info , I'm still confused about the subject .
Glenn_Dude, I don't know the answer to your question. That's an evidence that you still cannot trade freely with 25K or a little more. Hope some nice people here will give you an acurate answer.
Thanks qdz My account liquidation value is more than the rquired 25 K , however , since I have many open option positions which cannot be used for margin purposes , this fact brings my equity with margin value to well below the 25 K rquirement . And when I check my IB Account balance from TWS , IT still displays the # of daytrades left to use , and I'm assuming if I was allowed to day trade freely , this DT countr would probably disappear , wouldn't you say ? Thanks
My friend has an alternative to answer your question. That is, just read the counter. Check if it will go down by one after you finish a daytrade. You will have an idea which balance to read into. My friend also told me the support service was not helpful at all, very problematic.
The NASD FAQ which IB refers you to merely says "$25,000 minimum equity". IB chooses to take the strictest interpretation of rules, so they require $25,000 equity with margin value. IB does not count the value of stock options toward the $25,000. I don't think they count the value of nonmarginable stocks either. When you sell your options, and the Equity With Margin Value goes back over $25,000, the daytrade counter will say "Daytrades Left: Unlimited".