Day traders are one trading stock, options, commodities, or futures on the web. Many times the new day traders ask about the difference between trade / trade options vs. Futures Day Trading. This question appears many times in our user camp. Now, if the rules are ignored accidentally (or consciously), let’s discuss what it is and what happens if it is violated.
This article only debates online trading online because it relates to stock and vs. commodity and future options. Commodities and the future have similar online trading rules.
If you have become a part of the trade anytime, I’m sure you have heard the rule of 431. This is defined as (margin requirements) for each customer who performs four or more online trading online in five working days in a row. Furthermore, your online trading activities are greater than six percent of your total trade activity for the same 5 day period (from the Finra site). Having an unpleasant margin call and must be answered if it is violated. As trading traders’ trading shares are options with less than $ 25,000 in your account, you must realize this money trade is more than 1 time in a period of 5 days.
Day trading and commodities do not have this type of margin requirements. Margin requirements When trading different days in you can make a lot of trade in certain days and there is no limit how often you can exchange your money.
Rules for online trade
Equity in your trading account must be maintained more than $ 25,000 to be in a position to trade and not experience problems. If not, let’s say you are trading $ 5,000 and cash from your position in 10 minutes. The $ 5,000 cannot be traded for 5 days. Strange rules that I know, but that’s the rule.
Futures and commodities, margins can be as low as $ 500 and after cashing from position, the same money can be traded again without waiting time.
Only three trades in a week (5 trading days) are permitted or you will be given a 90-day suspension of all trading activities if you are still involved in trading on the 4th day.
A trader can transact the day many times a day without restrictions.
Therefore, in my opinion, trading day is a better way to take if you take a lot of trade in a day.
When trading the amount of $ 25,000 in equity must be maintained in your trading account. During buying and selling the same stock / options on the same day, do not enter the new trade where funds from the sale of shares have just been sold will be used to obtain new positions. If you have bought a position from cash from the same day on the same day, it is best to keep that position overnight.
The trade rules I offer here are what I run throughout the year I have traded. You can get all the info that covers with exploring online networks for trading day trading and pattern patterns. Wikipedia can be used to get this info.