Which brokers have the best "buying power?"

Discussion in 'Retail Brokers' started by max401, Aug 18, 2002.

  1. Which brokers release funds immediately, that is give the buying power back instantly after after each sale, i.e. you can trade stock XYZ in and out 300 times a day in true daytrader fashion.

    Is there a minimum cash and/or margin amount needed to trade this way?
     
  2. Interactive Brokers does this as far as I can tell. I'm not familiar with their under $25,000 accounts, but I know if you have over 25,000 you get 4x buying power day and night, and buying power is updated every minute. Margin calls are executed automatically by their software if you exceed your limit for more than one minute - the program will close 100 shares of one of your positions at market (I don't know how it decides which one).
     
  3. "buying power is updated every minute"

    This means that, in essence, your trades are "cleared" every minute?
     
  4. As soon as I close out a position my account equity is instantly updated. It's that simple.
     
  5. Pabst

    Pabst

    It closes the one invariably worth keeping. :D
     
  6. Banjo

    Banjo

    4 x margin overnite, how do they do this? Thought sec. regulation T mandated 50% overnite for stocks. I trade futures, just curious.
     
  7. They started doing it a few weeks ago. You gotta have balls of steel to go out on a 4:1 limb overnight with this up-one-day-down-the-next market.
     
  8. I really want to know how they legally do it. I am at IB now. I really love it though. Before, I had to wait a full day for my trades to clear from overnights. I love the 4X leverage on 1 dollar stocks too. I can margin against my THV holdings all I want.
     
  9. Just shows you the hypocritical SEC bullshit about the PDT rule. It's to protect traders, my balls. Yeah - we'll protect you from yourself, oh and by the way - here's 4x as much rope to hang yourself with, sucker. And go ahead and hold it overnight so when your position gaps down 25% tomorrow you'll be out of the game flat broke.
     
  10. praetorian2, did you trade MWV on Friday?

    BTW, how come you are so confident in THV? Why only this one stock? Doesn't it worry you a bit that they could burn down over night or have a killer virus outbreak or something? I agree it might be a good trade, but to put all your life savings in it as if it were a savings bond, that suggests you know something we don't.
     
    #10     Aug 18, 2002