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Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (2077)	2/13/2000 5:22:00 PM
From: Dominick	Respond to of 2120

Wayne: I don't think you claim the sale was a short against the box. The reason is you have to borrow more stock to short which requires a Reg T initial call. I believe you must classify it as such before the transaction i.e. if your trading platform has that option. And, let's not forget it must be classified on your tax forms. The reason the firm sold your stock is because you sent no funds for the Reg T initial call. My understanding of a PDT account is they only look a trades made that day. So if you sell a stock you held overnight it is classified as a short not closing a position, which requires an initial Reg T call. The consequence of this misclassified transaction is most firms deal with just a couple of clearing firms. If your account is closed due to a Reg T violation they don't want you. Happy Trading, Dominick