In Reply to: Re: =====> HA posted by Hải Âu on May 18, 2020 at 09:01:07:
What is a day-trade/round trip?
A day-trade (round trip) occurs when you buy to open1 and sell to close2 (or sell to open3 and buy to close4) the same stock or options position during the same trading day. Closing a position held overnight and reacquiring the position the following day is not considered a day trade. A trading day includes all premarket, normal trading hours, and extended-session hours.
If you execute four round-trip orders within five business days, your account could be flagged as a pattern day trader account. If flagged, you will need at least $25,000 in total account value at the start of the day or you will have to wait 90 days before you can day trade.
Note: Pattern day trading restrictions do not apply to accounts that have at least $25,000 at the start of a trading day.
Here are examples of round trips:
The following example has one round trip
Buy to open 200 XYZ
Sell to close 100 XYZ
Two round trips
Buy to open 200 ZYA
Buy to open 100 ZYA
Sell to close 300 ZYA
Sell to close 1 ZYA
One round trip
Sell to close 100 XYZ (held overnight)
Buy to open 100 XYZ
Sell to close 100 XYZ
Buy to open 100 XYZ
Two round trips
Buy to open 200 XYZ
Sell to close 100 XYZ
Sell to close 100 XYZ
Buy to open 200 XYZ