Buy-sell stock transactions limit if i have $25000 in my account.?

Question

If I have $25,000 or more in my stock account, can i do buy-sell as many times as i want during a single day or there is still a limit? (Suppose, i will keep my account more than 25,000 or more forever).

Answer 1

If you are looking at margin rules, than yes...as long as you are within your margin requirements which are set by the FDIC, than you are fine.  If you are talking about simply using 25K of your own money to buy and sell as much as you want, than that would be different.  

Reason being is that brokerages have a compliance department, which means this department tells them what the government means and what it wants the brokerage to do. The SEC requires that limits be set on some accounts depending on the level of experience of the investor.  Your net worth and the amount in your account are irrelevant...the SEC is making sure that the brokerage is not allowing you to churn your account so they can collect the commission fees.  If this is your situation and you are h**l bent on changing this...call the broker and request to increase your Daily Volume Limit.  Its just that easy.

Answer 2

Yes, normally you can execute as many buy-sells in a day as you like, as long as you don't exceed your buying power.

For example, say you have $25k in your margin account and your day trading buying power is $100k (the usual 4x rate).  You can buy $100k worth of stock, sell it, then buy another $100k of stock, and so on, as often as you like in one day.

But if you have MORE than $100k in open positions at any point during the day, you'll get a day trading margin call.  Typically, what will happen then is your buying power will be reduced to 2x and it will be based on aggregate purchases for the day, rather than the "time and tick" method described above.  And if you don't meet the call within 5 days, you'll be limited to trading on a cash-available basis for 90 days or until the call is met.

Some brokers may implement stricter rules, but they would be the exception.

Answer 3

View It Now    FinanceExtends (dot) com

Answer 4

Yes you can buy and sell stock.

The Federal Reserve requires that all purchases must be paid in full before that are sold and if not the account is restricted for 90 days or until payment is received and you can use the proceeds of the sale to cover the amount due of the purchase.  So you can buy and sell  as much as you want as long as all the purchases are paid in full.

You're thinking of the Pattern day trading rule-  which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customer's total trading activity for that same five-day period

This rule requires that you have a margin account, AND you have a minimum equity of $25,000,   Minimum equity and balance is NOT the same.

Equity means margin,  Equity is what your ownership is in the account... So you take market value minus any debit balance plus and credit balance and the result is your equity.

In order to be a good trader and/or investor you need four important programs in effect before you start

1 - A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.

2 - Sufficient trading/investment capital.  Use your own money, there’s no need to go into debt so that you trade/invest.

3 - A written money management program in place.

4 – A full and complete understanding of the rules & regulations of the industry.

Good luck with your trading

Answer 5

Depends on the rules that the broker dealer you are with imposes.  I'd suggest depositing the funds with interactivebrokers as they seem to allow unlimited day trades.  Know this though...you had better close out by end of day or you're going to have MARGIN calls/issues.  PEACE!