Now imagine this: borrow, lose, repeat. Borrow, lose, repeat.
Oversimplified. I think that this gedanken exercise has three iterations:
***
1.
Attempt to open daytrading account
Determined unsuitable
** Choice of opening "regular" brokerage account and/or trying a different firm
(repeat as desired or necessary)
2.
Attempt to open daytrading account
Suitability affirmatively determined, min. amounts deposited
Successful trading
(Happy trails)
3.
Attempt to open daytrading account
Suitability affirmatively determined, min. deposits deposted
[3a.] Lose a certain amount (firm discretion, internal parameters; say "x%" of initial account value)
Suitability reassessment triggered at x% loss.
If reassessed as unsuitable in light of losses, go back to **.
If reassessed as suitable, continue trading. If successful, go to 2.
(repeat as necessary)
[3b.] Eat into $25,000 min. equity
Suitability reassessed immediately.
If assessed as suitable, no trading permitted until equity balance brought back up to minimum amount.
If determined unsuitable - whether from a risk and/or strategy perspective, see **.
***
That's how I think many firms will handle the process.
LPS5 |
