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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (13200)6/14/2001 9:20:01 PM
From: TraderAlan  Read Replies (2) | Respond to of 18137
 
KM,

Thats easy. The answer is no. Your "identity" as a PDT comes from flipping, not how much you flip. If you round trip intraday the required number of times, you get the scarlet PDT on your forehead.

The question is how you are punished. The brokers seem to have some leeway, but they still will likely tie your privates to a tree and flog them.

Alan

PS Hey you been?



To: KM who wrote (13200)6/14/2001 10:04:03 PM
From: OZ  Respond to of 18137
 
Let's say you have a $20,000 account. Can you avoid the PDT if you never use margin

Well even though you might be technically labeled a PDT for flipping in and out too many times it really does not matter if you are using a cash account. Yes, you will lose the ability to short but because in a cash account "you never use margin" there is no looming penalty threatening you since they cannot take the margin away.

Oz


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