Ran into this today through E-trade, so the way I understand it IS! And Please correct me if Im wrong or clarify for me.
It takes 3 buisness days to settle a trade. A Gain or loss Looks instantanious but it isnt.. takes 3 days. SO with my small account on friday the 30th I had $1690.00 and some change in the am.
I had 3 trades that day, roughley $1115.00 of activity on the 30th.
basically leaving me 575.00 left to trade with untill 07/06/17 untill the trades from the 30th are settled..gain or loss....Correct?
So today in the am I bought 300 shares total of $797.45 which the way I understand it had left me defficient of -222.45 because my 3 trades from the 30th are not settled untill tomorrow the 6th.
If I had a 10k account i wouldent be posting this because it would have been coverd $ wise in my account, Correct?
so with a cash account you can make as many day trades as you want?
@mstr2157 Correct, there is no "day-trading" limitations with cash accounts - you are limited by how much settled funds you have.
@wannabestocktrader Thank's Yes I am in a cash account, and yes I did receive a good-faith violation. Talked with e-trade and they said that you can received 3 in a calendar year before any restrictions are put upon you. The part that confused me was "Unsettled Cash Available for Investment" which was somewhere in the amount of 1500.00+ And the Cash Purchasing Power in the same amount.
@RBI Thanks
Join now or log in to leave a comment