Fridrik, to answer a couple of your questions:
1. You pay an additional flat commission for each additional 5000 shares, and you must place additional trades. That is, to buy 9000 shares, you place two orders - one for 5000, and one for 4000 (or 3500 each, or however you want) and you pay 9.99 x 2 = 19.98.
2.Your buying power is updated instantaneously when you sell stock. There is no catch.
However, your current broker MAY be giving you additional margin. I noticed the odd wording "your daytrading buying power". Some brokers used to allow 25% margin on daytrades, but I thought that had been completely elimiated.
Datek's initial margin requirement is always 50%. They do not have a special more-liberal "daytrading" margin requirement, nor do they allow you to use maintainence margin to purchase new securities, as some brokers do. To buy new securities, your account ratio MUST be > 50%.
Anyway, if you deposit $50,000 cash in your account, you can buy and sell $100,000 worth of stock - the same or different - a dozen times in the same day if you so choose. (That's assuming no profit or loss, except for a $20 or so profit on each trade to cover the commissions!) |
