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| deprived |
 Posted: Fri Aug 31, 2007 4:08 am Post subject: 3 day rule - more questions |
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Investing Sr. Associate
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| I have an account and once i sell a stock i get my funds posted within that business day and i pay a confirmation fee to ensure the funds are aqquired, Am i still limited to the three day rule? |
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| efflandt |
| Posted: Fri Aug 31, 2007 10:49 am Post subject: |
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Investing Manager
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Who makes you pay a confirmation fee to have have funds available from a sale available for immediate purchase (no broker I know charges a fee for that)? Fidelity immediately makes funds from sales available for purchase without a fee. However Active Trader Pro warns if you buy something with those funds that you cannot sell for 3 days. I hadn't seen that warning on web based trading, but maybe I had cleared cash available at the time, or they figure those not using ATP are less frequent traders.
Thinkorswim has separate slots for stock & option buying power, which would include same day sales of long stock, and balance available for day trading, which would exclude same day sales. Proceeds of a sale do not show up in the day trade slot until the following day. Their IRA's are called modified margin. No borrowing, but you can trade option spreads with known risk, and can sell naked puts (which puts a hold on cash to cover). However, you cannot short stock or sell naked calls, because that is unknown risk.
To NOT be under the 3 day free ride rule you would need a regular margin account. |
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| prs1065 |
| Posted: Wed Sep 05, 2007 4:58 am Post subject: |
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Investing Manager
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| thanks for the information |
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