MedSmart Group Inc (MSGP)

[AbsoluteMonkey]

It's a FINRA rule. Doesn't matter which broker you use.

Pattern Day Traders

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

The Financial Industry Regulatory Authority(FINRA) has put into place an amendment to Rule 2520 that will impact what the FINRA 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 FINRA 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.**

A same-day sell short and buy-to-cover would also constitute a day trade. Excepted from the new requirements are long security positions held overnight and sold the next day prior to a new purchase of the same security, and short positions held overnight and purchased the next day prior to any new sale of the same security. If the number of day trades is six percent or less of total trades for the five-day period, you will not be considered a pattern day trader, and the special requirements under Rule 2520 will not apply to you.