Day Trading Equity Requirement?
Sorry if this question has been asked before. I’m sure it has, but I have searched and searched, and can’t find a direct answer to my question.
Anyway, I’ve heard that "effective September 28th, 2001 the NYSE and NASD imposed a $25,000 minimum equity requirement for ‘pattern day traders.’" so you need to have $25,000 equity to day trade.
Does this mean any day trading? I’ve heard that I can trade FOREX and S&P without this requirement. Is this true, or does this margin requirement apply to all day trading?
Yes you can trade Forex without this requirement.
There is barely restrictions imposed in forex trading.
14 years of full time forex trading
Asia Forex Mentor,
Ezekiel Chew
http://www.asiaforexmentor.com
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July 14th, 2010 at 12:44 pm
The rules apply to all types of daytrading:
FINRA (NASD) rule that applies to any customer (margin or not)[1] who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any five consecutive business day period. A pattern day trader is subject to special rules. The main rule is that in order to engage in pattern day trading you must maintain an equity balance of at least $25,000 in a margin account. The required minimum equity must be in the account prior to any daytrading activities. Brokerage firms are not required under the rule to monitor the minimum equity requirements on an intra-day basis.[2] Three months must pass without a day trade for a person so classified to lose the restrictions imposed on them.
Rule 2520, the minimum equity requirement rule was passed on February 27, 2001 by the Securities and Exchange Commission (SEC) approving amendments to National Association of Securities Dealers, Inc. (NASD).[
References :
July 14th, 2010 at 1:01 pm
You can make 3 day trades in a 5 day period.25k is the requirement to day trade every day.Forex and Futures have no day trade rules, but with forex you can’t trade on margin and with futures you have to meet the capital requirement to trade it.All requirements for futures fluctuate depending on the future.
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July 14th, 2010 at 1:16 pm
Yes you can trade Forex without this requirement.
There is barely restrictions imposed in forex trading.
14 years of full time forex trading
Asia Forex Mentor,
Ezekiel Chew
http://www.asiaforexmentor.com
References :
http://www.asiaforexmentor.com