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.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: MaryinRed who wrote (31881)	4/21/1999 7:33:00 PM
From: FrozenZ	Read Replies (1) \| Respond to of 122087

Yes, I think it was suretrade that told me there is a nasd rule that says you can't buy and sell the same stock in one day, so they can't allow it... which is the craziest thing I've ever heard because 90% of the other brokerages allow it.

To: MaryinRed who wrote (31881)	4/21/1999 8:00:00 PM
From: If only I'd held	Read Replies (1) \| Respond to of 122087

Mary, that is correct. Are you using Townsend Analytics by any chance?? If you shorted something in your IRA, then you must have entered the trade as a margin trade rather than cash. You have to be careful about that. i have bought stock on margin in my IRA by accident and actually created a call. The software doesn't always catch it, but you could be at risk of not having control of your account the following morning. And yes, it is a rule that you can not trade with money made from an overnight position in your IRA. It is the same as using proceeds in your margin account. The cash is available but basically, you have 1/2 the buying power after the sale until the next morning. The IRA proceeds are not available at all. Be careful if you are learning a new trading system. You can get into trouble quick. Make sure you understand the rules very clearly. Professional daytrading firms do not play by the same rules as Ameritrade, Etrade, etc... Also, you must know that if you create an overnight RegT call, you must wire in funds to cover it or you often have to take a strike against your account. 1st strike is a warning. 2nd strike and your margin is restricted for 90 days. 3rd strike and you are cash only. It's confusing at first. But don't get all 3 strikes before you even understand the rules.

To: MaryinRed who wrote (31881)	4/22/1999 12:26:00 AM
From: Nazbuster	Read Replies (1) \| Respond to of 122087

Mary, follow this link for a complete explanation of margin rules with examples. It's complicated and needs more than one reading, but they will hold you to it. nasdr.com I think the overriding philosophy is that you start the day with certain borrowing power. They will credit you with the buy/sells intraday, but not sales of overnight holds, as your buying power was computed from the overnight value. The dollars from your overnight sale are not considered "available" for margin purchases on the day of the sale; only the stated buying power is available. In fact, if you use your full buying power from the day before and hold all purchases overnight, but you have net losing trades and or end-of-day valuations compared to the purchase costs, you'll get a margin call since they view the reduced value of your purchases as an excess expenditure or having overextended your credit.