When you open your account, your excess equity is $63,000.
Your daytrading buying power is twice your excess equity, or $126,000.
You buy 2000 Dell @ $62.75 (against my advice).
Let's say Dell closes at $65.
Next morning you have overnight position with market value of $130,000.
You gained $4,000 (on paper), so your account value is $67,000.
Maintenance requirement is 25%. 25% of %130,000 is $32,500. This (maintenance requirement) is how much must be subtracted from the value of your account to get today's excess equity.
$67,000-$32,500=$44,500.
Daytrading buying power is twice your excess equity.
2X$44,500=$89,000
Overnight buying power equals twice your account value or $134,000.
If you sell your 2,000 DELL today you can daytrade DELL up to $89,000 and carry overnight DELL up to $134,000.
So, lets say you sell the 2000 DELL you carried overnight at $68.
Now the price drops to $63. You can buy $134,000 worth of DELL. Of that you can sell and buy as many times as you like (daytrade) up to $89,000 worth. The remaining $45,000 worth you MUST hold. If you sell it you've generated a FED call.
I don't trade at MB, so the rules may be a little different. JMO
wily |
