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Hi. I am rather new but familiar with a three day period where you have to wait for a stock trade to settle. For example: I can buy Stock A then Sell Stock A, but if I buy another stock I cant sell that until the three days from my first buy are over (because the funds have to "settle"). Does this same 3-day settlement period apply to daytrading? If one wants to buy and sell several times (say 10) in a single day, does there have to be enough "settled" money to cover all of those trades, or am I restricted to the amount of sellted funds/margin that I have available. Does the $25,000-$30,000 account minimum or margin trading have anything to do with being able to trade many times in a day. Basically what I am asking is: can a daytrader (with the account minimum requirement) buy and sell as many times in a day as they would like?
Any help would be greatly appreciated. Thanks. |
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Here is statement from the
SEC located here:
Day Trading
"Under the rules of NYSE and NASD, customers who are deemed "pattern day traders" must have at least $25,000 in their accounts and can only trade in margin accounts."
Once you have the $25,000 account setup you are able to trade multiple times a day without a limit. I believe for some brokerage firms that minimum is $35,000.