I have a couple of follow up questions to steven's question:
1. Does having a margin account also remove the 3 day settlement restriction for OTC/Pink trades? I know that most brokers consider penny stocks to be non-marginable. However, if I restrict myself to trading within my account balance, will the margin account cover my settlement period and allow me to both buy and sell another OTC stock before the 3 day settlement is over?
2. With a margin account with less than 25k, are only trades that are both bought and sold in the same day counted towards the 3 day-trade limit? For example, lets say I do this:
Monday: Purchase stock A
Tuesday: Purchase stock B, C, and D and sell them all the same day.
Wednesday: Purchase stock D
Thursday: Sell stock D
Friday: Sell stock A
Would that be ok? And if so, when is the next time I could make a same-day buy/sell? Would it be the following Tuesday?
3. If you have a margin account above 25k and get the "Pattern day trader" status, are there no more restrictions? Or does that have its own set of rules?
