Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : A.B. WATLEY - THE ULTIMATE TRADER! -- Ignore unavailable to you. Want to Upgrade?

To: AlienTech who wrote (822)	3/14/1999 7:58:00 PM
From: john o	Read Replies (2) \| Respond to of 2045

Even in a cash account you have three days to settle (ie. come up with the cash). Since you buy after the previous sell, this isn't freeriding. Freeriding is if you did a $100,000 buy and then a $100,000 sale with only $10,000 in your account with no borrowing power. Even though they settle on the same day, you have used more money at one time than you have. In response to the original question, a cash account of $75,000 would be no different than a a daytrading margin account, but the maximum trade would be $75,000. In a similar daytrading margin account with equal borrowing power, you could make trades of $150,000 each. In the margin account, you just have more buying power. In either case, any number of trades can be carried out within a day as long as at no time is the maximum buying power exceeded. However, I believe the policy of most daytrading firms is to require a margin account. What Etrade does with the cash account is okay. This is my understanding and my opinion only. I could be wrong. Call ABWatley and ask them.