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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade
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To: Dan Duchardt who wrote (2051)2/11/2000 6:24:00 PM
From: dpl  Read Replies (1) of 2120
 
"However, we also hear about "free-riding" when one purchases stock in a day that exceeds the cash account equity. "Same day" settlement may not be sufficient
to allow unlimited buying, even if you are selling to raise the cash to buy again. It seems to me the issue may be one of accounting: If you do accounting intra-day,
then you would think unlimited buying and selling should be allowed, at least by Regulation T. If accounting is done once per day, then the free-riding restriction at
least seems plausible."

I think you hit it on the head.Firms without "intra-day accounting,such as Fidelity,will not let you day trade in a cash account.Their computers read only the debits and credits at the end of the day.In fact money in your account keeps earning interest if you are flat at the end of the day no matter how much you day trade.
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