Replies to post #64821 on Day Tradexchange Inc. (SYNJ)

[MetalHead]

Guys, here is the deal about using the funds for flipping.

Example with TDA:

1. I buy a stock.
2. Hold the stock for 3 days (clearing)
3. Sell the stock on day 4
4. Have immediate availability of the funds (because the BUY was cleared)

I can not buy a stock, but if i sell it, I will not have the funds until the BUY was cleared (3 days). This is with TDA with full margin to buy/sell(short), write options.

Scottrade is different.

[iheartmoney]

margin account with over 25K in funds

[Doc Holliday]

Get a margin account. Then it goes by day trades, not when money clears. If margin and over $25K then as many trades as you want. If under $25k then limet 4 daytrades a week. A day trade is defined by the SEC as a sell of a stock the same day you bought it. If you buy Monday, then sell that stock Tuesday, and rebuy it again Tuesday, still not a daytrade. The sell of the stock Tuesday of the stock you bought Monday is considered a liquidation by the SEC, not a day trade. What you buy has to be sold the same day to qualify it for a day trade. Get a margin account. Saves a lot of grief. A number of years ago I had about $40k in my account with a cash account. I threw out the SEC rules and traded as much as I wanted until one day I had over $500k in unsettled funds. I got a phone call. They shut my account down for 90 days.
Get a margin account.

[gogospeedracer]

I am not sure, I originally opened a cash account then later upgrade to a margin account, but this was years ago. It seams as long as I buy the stocks with available cash and have nothing on margin at the time. My sold stock cash is immediately available.