Jonbx5 wrote:
^
how much do u need to do day trading?
Yeah you need minimum $25K to start day trading, but if your account falls below that on your first few trades you can forget about trading for the next 90 days.
just for some of the people in this thread that dont know what a day trade is, and the requirements needed to be one (this is copied from myscottrade account in the Q&A section):
Q. http://What is a Day Trade?
A. A day trade is the purchasing and selling or the selling and purchasing of the same security on the same day (including pre and post market) in a margin account except for:
a. A long security position held overnight and sold the next day prior to any new purchase of the same security, or
b. A short security position held overnight and purchased the next day prior to any new sale of the same security.
Q. http://Will Pattern Day Traders be required to have a margin account?
A. Yes, all Pattern Day Traders must have a margin account and will be required to maintain $25,000 equity in order to continue Pattern Day Trading.
Q. http://What are the consequences if I have a margin account and I day trade four times in five rolling business days?
A. Your account will be designated as a Pattern Day Trading account, and you will be required to maintain $25,000 equity at all times in order to continue day trading.
Q. http://What are the consequences if I am a Pattern Day Trader and execute a day trade with under $25,000 equity?
A. When you execute a day trade with under $25,000 equity your account will lose margin privileges and you will be restricted to closing transactions only until one or more of the following occurs
- All margin debits are satisfied
- Your equity is brought up/increases to $25,000
- 90 days pass without any day trade transactions.
If all margin debts are satisfied, you may resume trading in a cash account.
-J23C
