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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Wayners who wrote (10039)9/3/2000 3:02:19 AM
From: Tai Jin   of 18137
 
Overnight margin is not the same as intraday margin. For day trading firms the overnight margin is typically 25% whereas intraday margin is 50%. Therefore, if you close an overnight position and reenter it with the same size and price, you are using 50% more margin than you think you are. This can lead to a trading call if you're not careful. If the overnight margin was the same as the intraday margin then you wouldn't have this problem.

...tai
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