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Author Topic: should i go from cash account to margin?  (Read 18652 times)

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johndoe

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Re: should i go from cash account to margin?
« Reply #15 on: July 27, 2008, 01:47:46 AM »
cowabunga dudes! ;D (who says that ???) anyways a quick question :P, when i would trade in my amertrade account with my 2k i used to have :'( :'( :'( :'( :'( :'( :'( :'( :'( :'( :'( :'( :'( :'( (i got carried away) :'( :'( :'( :'( :'( :'( i sometimes would get the money in my account the same day when i would trade? and sometimes i would have to wait 3 days inorder for the funds to clear to be able to buy again? :'( :'( :'( :'( :'( ??? ??? ??? ??? ??? ???
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Offline Vegas

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Re: should i go from cash account to margin?
« Reply #16 on: July 28, 2008, 11:57:53 AM »
You always have to wait 3 days unless you have an account balance over $25,000... It is not an individual brokers rule but it is considered a "free ride" under Federal Reserve Regulation T... This is enforced by all brokers... There is no way around it...

If a particular stock was bought using settled funds, you can trade it immediately if you like. If it was bought with unsettled funds, you must wait for the unsettled funds to clear before trading... The guideline is not what day the stock you bought settles as that is always three days but what day the funds you used to purchase it with settle... Hope this makes sense and doesn't confuse you...

A lot of guys state that a margin account is a way around this but that is not true... Even under a margin account, if you shaow a pattern as a day trader, they will still whack your pee pee...
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♦♦♦ Give me control of a nations money supply, and I care not who makes it’s laws... Mater Amschel Rothschild ♦♦♦

Offline Richmm63

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Re: should i go from cash account to margin?
« Reply #17 on: July 29, 2008, 09:32:29 AM »
ouch!!   ;D
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Offline Cody Kemper

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Re: should i go from cash account to margin?
« Reply #18 on: July 29, 2008, 12:13:23 PM »
With bank of america if I have no money in my accout but sell $5000 of a stock and the order goes thru I can purchase up to that amount minus commission since it takes my sell 3 day days to settle and also my purchase so they settle on the same day so thats not free riding I think or maybe BoA just hasn't told me I screwed up yet ;D
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Offline Vegas

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Re: should i go from cash account to margin?
« Reply #19 on: July 29, 2008, 09:18:40 PM »
Quote from: Cody Kemper on July 29, 2008, 12:13:23 PM
With bank of america if I have no money in my accout but sell $5000 of a stock and the order goes thru I can purchase up to that amount minus commission since it takes my sell 3 day days to settle and also my purchase so they settle on the same day so thats not free riding I think or maybe BoA just hasn't told me I screwed up yet ;D

That is what I was saying Cody... You can buy with those funds immediately without out a free ride penalty... But, you can't sell that stock you just purchased before the funds you used to buy it with are settled... That is then a free ride... You must hold that new stock purchase for 3 days...
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♦♦♦ Give me control of a nations money supply, and I care not who makes it’s laws... Mater Amschel Rothschild ♦♦♦

Offline TimT12

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Re: should i go from cash account to margin?
« Reply #20 on: August 14, 2008, 06:45:17 PM »
I can change my account to margin on scottrade if i wanted to. i believe the minimun u need to do so is 2,500.
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