What's considered as 1 daytrade at Interactive Brokers?

Discussion in 'Interactive Brokers' started by realtrades, Aug 1, 2020 at 5:57 PM.

  1. Hello, I was looking for examples of what Interactive Brokers considers as a single day trades or multiple day trades, for example:

    I see Robinhood shows: Buy, Buy, Buy, then Sell, Sell, Sell intra-day = 1 day trade

    https://robinhood.com/us/en/support/articles/pattern-day-trading/


    But @ Speedtrader that would qualify as 3 day trades as their example shows:

    If you scale into a 900 share long position by executing three separate 300 share buy trade orders, this doesn’t qualify as a round trip. However, if you can close out the trade by selling 300 shares a piece with three separate sell orders, it would qualify as three round trip trades. In this situation, it would be best to close out all 900 shares in a single closing trade if executed on the same day. This would qualify as a single round trip, instead of three.

    https://robinhood.com/us/en/support/articles/pattern-day-trading/


    Does someone know how IB defines a day trade when scaling in/out of trades? Thank you.
     
  2. murray t turtle likes this.
  3. %%
    Good idea ;
    IBKR algo prevents the 4th opening trade in a 5 day period.Noon is over halfway in time + usually price also...……………………………………………………………………………...
     
  4. Got in touch with chat, said: each closing trade, if entered through multiple lots would each count as 1 day trade:

    buy, buy, buy, then sell all in 3 lots, sell, sell, sell = 3 day trades
    buy, buy, buy, then sell all in 2 lots, sell sell = 2 day trades
    buy, buy, buy, then sell all in one lot = 1 day trade

    To keep it simple: multiple entries, one exit = 1 day trade or multiple exits from one entry = 1 day trade.
     
    murray t turtle likes this.