Here's a Q&A that Scottrade has -- still looking for the link
>>Day Trading Q&A
Q. What is the definition of a "Pattern Day Trader"?
A. The NASD defines a Pattern Day Trader as "any customer who executes four or more day trades within five business days, provided the number of day trades is more than 6% of the total trades in the account during that period".
Q. Will Pattern Day Traders be required to have a margin account?
A. Yes, all Pattern Day Traders must have a margin account and will be required to maintain $25,000 equity.
Q. If I have a margin account but I don't have $25,000 equity, what are the consequences if I day trade four times in a within five business days?
A. Scottrade must issue a day trading equity call in the amount of the deficiency below $25,000 equity.
Q. What will happen if I do not meet this day trading equity call?
A. Scottrade may be forced to close your account, or revoke your margin privileges.
Q. If funds are deposited to meet a day trading equity call, how soon can the funds be withdrawn?
A. Wired funds must remain in the account for two business days. All check deposits will be held to current Scottrade policies.
Q. Will day trading be allowed in cash accounts?
A. Yes, day trading will be allowed in cash accounts on a settlement date basis only. For example: an account that starts with $10,000 may only buy up to $10,000 in equities one time that day.
Q. Does the new day trading rule apply to options?
A. Yes, it applies to all equities and options.
Q. Will an account's status as a day trader be determined from September 28, 2001 forward, or will it be based on past activity?
A. Accounts will be monitored from September 28, 2001 forward.
Q. Once an account is coded as a "Pattern Day Trader", can the account be re-coded as a non day trading account?
A. Once an account has been opened and has shown a history of day trading activity, it must remain a day trading account.
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