Dan,
As usual everything you say is 100% correct. We had this discussion a few months back when we were all worried, me especially, about the proposed but now dead changes to rule 2520. What this guy is trying to do is prove to My Track/Penson financial simply that he can say start with $20,000 cash, Reg. T BP of $40,000 and Rule 2520 daytrading BP of $40,000 and simply buy $40,000 of XYX sell $40,000 of XYZ, buy $40,000 of XYX and sell $40,000 of XYZ without them saying he has to send in $40,000 to meet a supposed day trading call for exceeding $40,000 total in all daytrades. The rule isn't clear on this except for the fact that nobody enforces Rule 2520 like that....at least hardly anybody. |
