Margin account and trade

optiuser7 · 08-28-2007, 05:22 PM

is it true that we can do Day trading only if we have a margin account with a stock broker and not a regular account ?

wat is the problem if we have sufficient funds available for trading .

we can buy one stock and sell it the next day if we have sufficient funds right?

only if we do not have sufficient funds then we need margin account for trading am I correct?

I haven't started day trading or week trading (that is buy on monday and sell on friday)

Please clarify

aiki14 · 08-29-2007, 04:07 AM

To day trade you'll need a margin acct and $25k. I don't know what you mean by a regular acct.
You can buy a stock and sell it the next day but your cash won't be available for 3 days due to the T+3 settlement rule (the trade doesn't officially finalize til the third day after the trade). If you violate the rule your acct can be suspended from all but cash trades for 90 days.

Here is a good resource
http://www.investopedia.com

and another
http://www.tradingacademy.com/

08-28-2007, 05:22 PM	#1
optiuser7 valued contributor Join Date: Aug 2007 Posts: 162	Margin account and trade is it true that we can do Day trading only if we have a margin account with a stock broker and not a regular account ? wat is the problem if we have sufficient funds available for trading . we can buy one stock and sell it the next day if we have sufficient funds right? only if we do not have sufficient funds then we need margin account for trading am I correct? I haven't started day trading or week trading (that is buy on monday and sell on friday) Please clarify

08-29-2007, 04:07 AM	#2
aiki14 forum leader weekly challenge winner 13x mar/07 simulation winner feb/07 simulation winner jan/07 simulation winner nov/06 simulation winner june/06 challenge winner april/06 challenge winner Join Date: Feb 2006 Posts: 5,328	Re: Margin account and trade To day trade you'll need a margin acct and $25k. I don't know what you mean by a regular acct. You can buy a stock and sell it the next day but your cash won't be available for 3 days due to the T+3 settlement rule (the trade doesn't officially finalize til the third day after the trade). If you violate the rule your acct can be suspended from all but cash trades for 90 days. Here is a good resource http://www.investopedia.com and another http://www.tradingacademy.com/

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