PDT in limited margin IRA >$25k

Discussion in 'Interactive Brokers' started by largib, Dec 12, 2022.

  1. largib

    largib

    So I'm interested in moving my IRA from TD to IB if things are checked out. Specifically, I have the following question:

    Assume the following:
    1. account size > $25k (say $100k)
    2. limited margin IRA
    3. PDT: Pattern Day Trader designation

    If I do the following trades (assume all large cap liquid stocks and the prices of these stocks here don't change):

    Holds $100K stock A at the close
    In the next morning after open, sell all A for $100K and then buy $100K B
    Sell all B for $100K and then buy C for $100K before the close

    Would the above trades have any violations to things like (good faith) or put simply, would the above is allowed?

    Put it another way, can a PDT with an overnight position day trade the unsettled cash multiple times in the next day after liquidating that position?

    Thank you
     
  2. schizo

    schizo

    PDT only applies to a margin account with $25K or less, so it doesn't apply in your case. You can trade all you want, as long as it's above $25K.
     
  3. You don’t have to worry about settlement or GFVs?