Let's clear up some possible misunderstandings:
Datek updates buying power in real time, that means if you sell a stock with some profit, this profit plus margin immediately become part of your buying power when you make the next trade.
For example, if I bought 1000 shares a $10 stock with $5000 cash plus margin, next morning it gaps up and I sold for $15. Then at datek I can use $10000 cash plus $10000 margin, which is $20000 buying power to make the next trade on the same day,( you can even trade the same stock you just sold) and no restrictions on whenever the next hold overnight, as long as you are within the $20000.
At MB your profits come to your account the next day, and if you sell the $15 stock as in above example, the $5000 profits come to you next day. You can use the $10000 buying power from liquidation, but you can only do one of the both: use the $10000 to daytrade and be flat at the end of the day, or use it to build the second over night position, which must be equal or less than the first over night.
I am not sure I understand it correctly, buy if not, it may be more restrictions on the second over night.
I am always in worries about my possible margin calls as I am not sure I understand and follow those margin rules. |
