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Roundtrip Question

post #1 of 4
Thread Starter 

Hi guys, I have a margin account at Scottrade and I have a question about going roundtrip without $25K.

 

Currently, there is a "Remaining roundtrips to PDT threshold: 3" in my account, which is the default.

 

I just sold short and bought to cover within a few hour's time and the threshold went down to 2.

 

What I'd like to ask is, is this threshold stock/ETF specific, meaning I can do 3 roundtrips for different stocks, or is it account specific, meaning I only get 3 roundtrips regardless of which stocks I go roundtrips on? So right now, if I were to go long on AAPL and sell in an hour, would that bring my threshold down to 1?

post #2 of 4

Correct, buy and sell, or short and cover, its a round trip.

 

 

post #3 of 4
Thread Starter 

Isn't that a disadvantage for people who have margin accounts with less than $25000?

 

If I buy stock XYZ and place the stop loss order and the stock dropped to the stop loss amount, then that counts as a roundtrip.

 

Say the market plummets on a day I bought 3 stocks and all 3 dropped to stop loss, then I basically violated the DT rule in one day...

 

 

post #4 of 4
Quote:
Originally Posted by Boba View Post

Isn't that a disadvantage for people who have margin accounts with less than $25000?

 

If I buy stock XYZ and place the stop loss order and the stock dropped to the stop loss amount, then that counts as a roundtrip.

 

Say the market plummets on a day I bought 3 stocks and all 3 dropped to stop loss, then I basically violated the DT rule in one day...

 

 


Well in that example, you wouldn't have violated anything. 3 day trades in 5 day rolling period.

And yes, it is a disadvantage for those without 25k in our account. It sucks, but what can ya do about it. Adapt.
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