16
Jan

I have a brokerage account with a balance under $25,000 and so can only execute 3 DAY-trades within 5 business days or I will be deemed a pattern daytrader and will receive a margin call per dow/nasdaq rules. My question is, does this apply to trading in pre/after market hours? Essentially, if I buy shares during premarket hours and sell them after the market opens is this considered a daytrade?


Answer:
Basically, yes.

Premarket trades are 'counted' as occurring on the day they are executed. Check with your broker to see how they handle after hours trades.


Answer:
Yes, that is day trading.

I am approved for direct trading on ECNs pre- and Post- market hours. I am classified as a day trader and I don't see the problem. Feel free to email me. There is something missing here. What are "dow rules"? Dow Jones is a publisher and doesn't make rules. What are "NASDAQ rules"? NASDAQ is a quotation system. Do you mean NASD? This has nothing to do with margin calls; you just need to have a margin account. You also need 25000 minimum equity according to NYSE and NASD rules.

Your question shows a fundamental lack of understanding of basic stock trading vocabulary. You should not be trading. My advice to you is to close your account immediately and give the money to a charity. Otherwise, if you keep trading without doing your homework, you will end up giving your money to people like me.

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This entry was posted on Wednesday, January 16th, 2008 at 10:43 pm and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or TrackBack URI from your own site.

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