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?
Thanks a lot!
Can you help answer these questions from other members on futures io?
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.
The following user says Thank You to vegasfoster for this post:
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.
The following user says Thank You to kiont for this post:
