InvestorsHub Logo
Followers 102
Posts 8054
Boards Moderated 0
Alias Born 05/30/2004

Re: PennyBenny post# 1976

Friday, 11/17/2006 1:30:47 PM

Friday, November 17, 2006 1:30:47 PM

Post# of 5907
sounds as if you need to change your account to margin, I would of thought you know what that is perhaps you do, but if not it would enable you to trade the same security for 3 round trips (buy/sell 3 times) before you would have to stop for 5 days.

Basic pattern day trader rule summary:

An NASD & SEC rule that applies to anyone who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any five consecutive business day period. A pattern day trader is subject to special rules. The main rule is that in order to engage in pattern day trading you must maintain an equity balance of at least $25,000 in a margin account.

A more complete version is listed here: NASD Rule 2520
http://www.patterndaytraderrule.com/



Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.