New pattern day trader rules at Etrade starting today:
Effective March 22, 2017, you can make opening transactions online that exceed your day-trading (or intraday) buying power but are within your Reg T (or overnight) buying power. This additional flexibility can be used for any securities transaction; however, the positions opened with such proceeds must be held overnight to avoid a day-trading margin call.
Previously, you were unable to make new transactions in your pattern day-trading account with the proceeds from sales of positions held overnight, intraday profits, or intraday deposits unless you called in to place a broker-assisted trade. FINRA regulations do not prohibit day trading on funds above and beyond your starting day-trading buying power, though doing so may trigger a day-trading margin call. (This doesn`t apply when these proceeds are used for opening new positions held overnight.)
What this change means for your trading experience
Whenever you place an online order at E*TRADE that exceeds your day-trading (but not your Reg T) buying power, you`ll be presented with a notification message. This is intended to keep you informed that the position you are opening must be held overnight to avoid a day-trading margin call. You can then place the order right away if you choose to do so.
Please note: If you prefer that your account be set up to prohibit online orders that exceed your day-trading buying power, simply call us at the number shown below. We`ll turn off this ability for your account.
AI
