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  1. Default Options Trading Rules - Need Your Help

    Hi Experts,

    I am new for option trading and I need your help in this.

    I just opened an options account with opening balance of 5K. Today I bought:
    MCP - 55 Calls
    MCP - 60 Calls
    SNDK - 41 Calls
    and sold them out after couple of hours, that means I made 6 trades today.

    Note: Total transaction was under 5k, I didn't use any margin money.

    I read somewhere that you can't make more than 4 trades in 5 days otherwise you have to deposit 25k in your account or your account will get locked for 90 days.

    Can you please help me out what did I do wrong here?

  2. Default

    Hmmm. I think you may be on to something. I will cut and paste from an email I got from TDA today.

    [FONT=Arial, Helvetica, sans-serif]The FINRA currently defines day trading as purchasing and selling, or short selling and purchasing to cover, the same security on the same day. A pattern day trader is defined as someone who makes four or more round-trip day trades in a five-business-day period, unless this activity is less than 6% of total trading activity in that period.

  3. Default

    I've never heard of that before, what brokerage are you with? The only thing I've heard of that's anywhere close to something like that is Regulation T which states that you can't trade with unsettled funds for intraday trades. What I mean by this is that in your case you couldn't enter and exit trades in total of more than $5000 in a single trading day.



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