Questions about "day trader" status

Discussion in 'Trading' started by Option Trader, Jan 18, 2009.

  1. I wired some funds out of IB, leaving less than $25k in securities, and this prompted that my orders are rejected, saying I am a pattern day trader--a bit of a surprise, but here is the real issue...

    I haven't placed roundtrip trades within the last week or more, yet this is occurring. Does this make sense? Isn't the WHOLE determination of pattern day trader based on the last 5 days of trading?

    Finally, I believe once in 6 months, one can specify you are not a day trader, correct? Where on the IB platform does one make this selection?

    Thank you in advance.
  2. If you have 24,999.99 you can not place trades. Your are under the minimum equity.

    If your securities and equity add to more than 25k then speak to IB as that shouldn't be.
  3. Below $25k doesn't mean you can't trade. It means you can't be a pattern day trader. I need to know if it's possible a person can be called a pattern day trader even though he hasnt placed 4 roundrippers in 5 days.

    (Note: Mysteriously, options at IB are valued differently overnight than intraday & after hours! Hence, overnight, the value is below $25k, and intraday it's above.)
  4. You are correct!

    Once the account has been "coded" as a PDT account, you need to have $25K in the account to trade.

    If your equity falls below the required $25K, this does not mean you can't trade, you need one of the numbnuts in the back office to change the "code" to a either a NON PDT margin account or CASH account.

  5. I heard TOS changed their policy, too, but I don't know all the details.
  6. Even though no roundtrips for 5 days?? If so, do you agreee that there's no reason now to need another 5 day wait after assigning a non-pattern day trader status?
  7. I thought this could be done online with IB.
  8. I said I agree in my first post.

    If you went below the $25K, and then traded they can and will "Freeze" the account.

    I get the feeling you have not posted all of the details.

    Call a the Compliance dept. @ your broker for the exact answer, I DO NOT work in compliance.

  9. open a ticket at the interactive brokers website and ask to reset your account
  10. They merely flash a warning before you open a 4th trade, that if you open the 4th trade, you won't be ab le to close it till the 5 days go by.
    #10     Jan 18, 2009