New to day trading, been paper trading for ~1 month and plan to continue for 2-3 months before trying with real money. Please help me understand trading restrictions in a margin account. Hypothetical, I have $30,000 in a margin account.
day 1: can i enter and exit 10 separate trades of $10,000 each (only 1 trade open at a time) during day 1? (assume no gain/loss for each trade) My account value would still be $30,000 (hypothetical no fees) at the end of the day, but I day traded $100,000 worth of securities.
day 2: are there any restrictions on what I can trade on day 2 based on day 1?
Perhaps I haven't phrased my search correctly on google, but I'm trying to figure out how margin accounts affect settlement date issues of cash accounts. Do I have to wait for the cash portion of my trades to settle before I use the funds? So if I make one of the $10,000 day trades mentioned above with $5,000 cash and $5,000 margin, do I have to wait for the trade to settle before i can use my $5,000 cash for another trade?
Why does Robinhood warn me about day trading when my account is not a margin account?
Title says all. Not even enrolled in Gold. IIRC pattern day trader regulation only applies to margin account. Edit: Not that I'm trying to earn money day trading. I'm just worried if RH will lock my account if I make a mistake.
Hola! Pretty sure I know the answer ... but is the day trade buying power limit .. per trade or per day? Can I day trade 40k unlimited times a day or only up to the dollar amount specified in my day trade limit? I decided to stick it out in RH until I recouped the pre market loss that made me want to cry lol but now I'm about 1k shy of 25k and I am trying to decide if I stay at RH For the cash management or switch to webull for the high DT buying power and day trade limits. Thanks for your feedback
Day trading on Margin Account. Any potential issues in the longer run with the tax dept?
Hi, Sorry if this is a noob question but I read all possible resources online/personal finance sites but could not get a satisfactory answer. I have been doing some day trading on my margin account for over a year now. Not every day but few trades in a week or sometimes even just a few trades in a month. I have made some nominal profits. I reported capital gains in my returns (took the help of a CPA in calculating the ACB value and calculation of taxes on capital gains). It was nominal. My question is if I continue to do day trading and maybe increase the frequency of trades, can it create issues for me in the future with the tax dept? I will make sure to report all capital gains correctly. Will a large number of trades attract any undue attention. I trade a few thousand in day trading ~15k CAD at a time. Can the CRA raise any objection seeing the volume of day trading? I believe mine is still very small to more experienced traders/professional. But just wanted to make sure that these small gains do not unnecessarily result in issues in the longer run. And yes. I do not day trade on TFSA/RRSP accounts. Only the margin account. I would be very grateful if the more experienced folks on this amazing subreddit share their opinion/advice! Thanks a ton!
So I heard cash accounts can do unlimited Day Trades as long as it’s settled cash. I have a margin account, but can I do day trades safetly while still making sure to use settled cash? I know it has the DTBP and ONBP amounts. But I’m just wondering if I can go passed the 0 day trades left counter if I still have positive Day Trade Buying Power. Right now I’m [0,1,1,2,3] with a caution risk level. I do not have 25k in equity either. So would I have to turn it into a Cash account to make sure I’m safe against the GFP?
Hi all, I need some clarification on day trading using margin account 1) if my account value is 30k all in stocks and i don’t use any margin. Can I trade more than 4 times a day and what limitations do I have?? 2) will l pay interest if I trade same stock more than 4 times using my own money in margin account? Thanks in advance for your replies!!
Can you sell your positions the next trading day with a margin account?
I’ve been trying to get a margin account for 3 weeks, I have respected the t+2 rule for unsettled and have over 2k and every thing else’s is good and check, but after 3 days of holding the settled cash I still can’t upgrade my account because it says it hasn’t passed 2 days. If I had a margin account I would have mas bank. There’s was times where I was up 2,700% on a option the next trading day but since I can’t sell because I would get a GFV, after that I took a 50% loss and my portfolio plummeted
Can I get flagged if a day-trade with a non-margin account?
Let's say I have a regular, non-margin account and on the same day I buy-sell 6 stocks. The stocks wouldn't be bought from the proceeds of each sale, but from the money I've deposited. Would that flag me as a day trader? Example: I have $20K in my account. I buy GN[redacted] for $2000 and then sell it 5 minutes later for $2500. Then I buy another stock and sell it 10 mins later... repeat until I've spent a total of $20K on buying. The confirmation for the shares I've sold will arrive in T+2 so I won't trade with those $20K for the next 2 days. That should be ok, right?
Cash account help! So on TD I applied to change my account to cash only so on TOS I can make unlimited day options trades with settled funds... why does it say standard cash but margin enabled? Does it still need time to apply?
I posted a picture on here last night asking to verify if I had a cash or margin account. If I have a cash account, then why does it say that I only have 3 day trades left on the Thinkorswim app? Thank you
Fidelity Cash Account (Non Margin) - Unlimited Day Trades Allowed?
What the fuck? I made like 30-40 day trades in my cash account (non margin) in the past 2 days due to this market chaos and nobody gave me an account ban or restriction or anything. Does fidelity not give a fuck or something? This is supposed to be a good faith violation and they are only supposed to allow 3 in a 90 day rolling window BUT I MADE 40 VIOLATIONS Why am I not restricted or something? Why has someone not called me? 38 day trades to be exact. (NON MARGIN). Just cash account. Account value with them is much less than $25k. Every single trade was with UNSETTLED CASH from the previous trade My SETTLED CASH HAS BEEN $0 FOR LIKE A WEEK
Newbie here, been "day trading" (sort of) on Robinhood for the past few weeks. Ran into the issue of being marked as PDT and blocked from selling certain stocks I had recently purchased. Considering: -I am starting with a small account balance of $1.5-2k -I am trying to save as much in fees as possible to keep my daily percentage gains high (reason why I decided on IB as my new broker) -I would like to have account deposits/withdrawals go thru as quickly as possible (preferably the same day I deposit) -(Not as important as the above requirements) Would like to have the option of trading options (pun intended) It would be better to go with a cash account right? Or are there benefits to day trading with a small balance margin account that I'm not seeing? Thanks in advance for the advice!
Question regarding tax on day trading in my margins account
Using a throwaway account as I don't want any financial information linked to my main account. I started day trading last year, but due to the increased volatility this year, I have been able to make a good return. My question is regarding my tax bill. I am making 55000 a year for my day job. Would my day trading profit count as simple capital gain tax or a business tax that I have read somewhere here? Is there anyway to mitigate the amount of the taxes I am about to pay? Cheers.
Looking to start an account specifically for margin trading, day trading, and all the things I shouldnt be doing. What platform supports this best?
I have an FA, I've been watching his buys and sells in my IRA and CMA. Interesting.... but I think I'm ready to lose $100 or something. I hear Robinhood is not ACTUALLY day trading? Is that true? My actual portfolio doesn't have trading enabled so I cant fuck myself over, but I'd happily open a new one. I was planning on opening a vanguard, but can you day trade on that?
CRYPTOFXCHANGE.COM (MANAGED ACCOUNTS) (day trading no Margin CALL)
CRYPTOFXCHANGE Providing quality fair investments to all in the Crypto-currency World. FIRST NO 'MARGIN' CRYPTO FX EXCHANGE. YOU CAN ONLY LOOSE TRADE IF YOUR TRADE DECREASES BY THE AMOUNT YOU PUT IN NOT A 'MARGIN' BASED IN LONDON, UNITED KINGDOM REGISTERED COMPANY MANAGED ACCOUNTS, SIGNALS , PENNY STOCK CRYPTO ADVISERS HELPLINE Buy and sell your crypto-currency through us and watch your investment grow into riches. Customer Service EMAIL: firstname.lastname@example.org How You’re Protected We never trade more then what you have put in and always mantain calculated risks with our managed accounts. Also our main feature of our normal day trades are we have no Margins so your free to trade without loosing stock just purchase your stock from us. Why Us? We are creating future millionaires right now as we speak all of our managed accounts were given penny stock trades this year that will definitley fluxuate and rise into thousands of gains we done this to prove our knowledge to the industry and create future millionaires we have penny stock advisers that liase with our managed account clients. Cryptofxchange 0800 193 0153 Hours Mon By Appointment Tue 09:00 – 17:00 Wed 09:00 – 17:00 Thu 09:00 – 17:00 Fri 09:00 – 17:00 Sat Closed Sun Closed All managed accounts & new clients have access to the freephone sales number
not quite understanding margin & day trading accounts
im considering putting about $30,000 into a think or swim account so i am not bound by the day trading rules, but I have a couple questions. I have read the technical explanations online but they are not very clear without actual examples of what's acceptable.
I have heard you can leverage up to 4x your equity with a margin account, is this correct? you can just go in and they'll sign you up to trade with up to four times the money you hand them? that is crazy.
and you can use the full value of that margin account (4 x equity) to trade as many times a week as you like? meaning, I can buy and sell $100,000 of stock more than once a day, every day?
EDIT: to answer my own questions...
Day trading buying power is the amount of money extended to a trader to perform active trading throughout the trading day. In order to qualify for day trading buying power in the United States, the trader must have a minimum account balance of $25,000. If a trader is able to meet this cash requirement he or she will have 4 to 1 buying power. This means if the trader has a $50,000 cash account, the trader will be able to buy or sell short $200,000 worth of stock during the trading day.
the buying power applies to OPEN positions only. meaning, if you have $100,000 buying power you can open and close as many positions in a day as you like, so long as you never exceed $100,000 of positions at any given time.
The client then has 24 hours to wire funds into the trading account to meet the initial margin requirement. In addition to margin requirements, it is important to understand the risk associated with holding a position overnight, such as exposure to potential adverse price movement occurring outside of regular trading hours. With a margin account you will be subject to the pattern day trading rule, which requires you to have a minimum of $25,000 in equity in your margin account if you place 4 day trades or more in a 5 day period. Day trading in a cash account is similar to day trading in a margin account.Margin is the ability to use leverage to buy securities. Trading under a cash account significantly lowers your trading risks. Under a cash account, traders are not able to use leverage, pattern day trade, short sell and traders are subject to the three-day clearing rule.In addition day traders with a cash account are When you open up an account at a broker for day trading, you have the option of choosing either a cash account or margin account.And when it comes to choosing a cash account or margin account, many people have questions about it, especially as a beginner in day trading.I had a friend ask about this on Twitter (follow me on Twitter by clicking here) so I've decided to make an article about it Time and tick is a method used to help calculate whether or not a day trade margin call should be issued against a margin account. With this method, only open positions are used to calculate a day trade margin call. For example, assume your account had a day trade buying power of $90,000.
Cash Account or Margin Account for Day Trading - YouTube
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