Do I need $25,000 in equities to day trade on a cash account at tdameritrade.com?
I read that an account will be marked as a day trading account if I trade 4 or more times within 5 days and then restrictions will be applied. It says that I will need $25,000 in equity. Is that just with a margin account or does that include a cash account too. If I need the equity with a cash account does anyone know the reason why?
May 13th, 2010 at 2:43 pm
no
May 13th, 2010 at 2:52 pm
I think the best person to solve this question will be dalal street investment journal. They have expertise in this field…
May 13th, 2010 at 3:24 pm
No you do not need to. You need $2,500 to be approved for a margin account. you need $25,000 for day trading anything below that amount you’ll be restricted to 3 day trading (buying and selling on the same day) within 5 business days.
For daytrading see live buying of stocks and Forex http://tradefxlive.blogspot.com/
May 13th, 2010 at 3:31 pm
The rule is if you are tagged as a pattern trader, you must have a margin account and the account must maintain a minimum equity of $25,000 at all times.
You can also have a cash account, along with this margin account and like all cash accounts you are not required to have a minimum equity.
You can day trade in a cash account (not as a pattern trader) but you must pay for all purchases in full before a position can be sold, if you sell without making full payment, your account will be restricted for 90 days or until payment is received and you can not use the proceeds of the sale to cover the purchase amount