Xten (XNWK)

[nitetrade]

Pattern Day Traders

Do You Meet the Definition of a Pattern Day Trader?
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If you do, an amendment to the NASD's Rule 2520 may affect you.

The National Association of Securities Dealers(NASD) has put into place an amendment to Rule 2520 that will impact what the NASD calls "pattern day traders."

You're considered a pattern day trader if you regularly buy and sell the same security on the same day in a margin account and execute four or more such trades within a period of five business days.*

Beginning September 28, 2001, the NASD imposed more stringent margin and other requirements on pattern day traders. As of that date, if you're a pattern day trader, you'll be required to maintain a minimum equity of $25,000 in your account prior to any day-trading activities. You'll also need to open a margin account if you don't already have one.**


In addition, you cannot use the proceeds from the sale of a penny stock that was purchased in the same day to then buy back or buy another penny stock. Becareful......when I first started I got suspended from Web Street, My Discount Broker, and SureTrade....My Track never appeared to care :).