How does Ameritrade treat margin rates for intraday trades?
I am wondering if someone knows how does Ameritrade applies rates on margin accounts where the position is closed the same day?
Should I divide the rate by 365 even if I am holding the position for minutes?
Also, does anyone know if the $25.000 minimum requirement for day trading means I must have 25K in my account and day trade with anything else I have in the account or I can also use those 25K to trade during the day as long as the account does not go below 25K?
It's been a long time since I day traded on my TDA account, but my recollection is you still get it on short trades, but it's pretty negligible. I would inquire with them directly on the specific calculation if you think it will be an issue.
You have to have a minimum account balance of $25,000 and you can trade the entire balance, which IMO means you really need around $35,000, especially if you plan to max out at 4X leverage.
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You can use that money to trade, but you need to have those $25k (cash) back in your account by the end of the day.
But as mentioned, you should start with a little more than that, even if you don't plan on using it all. Because a losing trade will drop you down below 25k, and you won't be able to trade until you add more money to your account.
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