Which of the following satisfy the pattern day trading rule?
Which of the following satisfy the pattern day trading rule?
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Waqas Sarwar MVP · External communityPost link
External question — Personal Finance Stack Exchange
Author: Waqas Sarwar MVP
Original post: https://money.stackexchange.com/questions/129544
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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I have confusion about the day trading rules. From below scenario, which is pattern day trading?
I bought 1 Apple share in pre-market and sell it in the after-market hours (within same day).
I bought 1 Apple share around 11AM and sell it in the after market hours (around 6PM)
I bought 1 Apple share in after-market hours (5PM) and sell it tomorrow in pre-market (8AM)
I bought 1 Apple share in after-market hours (5PM) and sell it tomorrow in regular market (11AM)
I bought 1 Apple share in after-market hours (5PM) and sell it tomorrow in after-market (6PM)
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Bob Baerker · External communityPost link
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Author: Bob Baerker
Original post: https://money.stackexchange.com/a/129545
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Day trading is the buying and selling a financial instrument within a single trading day.
Based on that definition, there should be no confusion. Trades 1 and 2 are day trades and trades 3, 4 and 5 are not.
The Pattern Day Trader rule allows 3 day trades in a rolling five business day period in a margin account, provided the number of day trades are more than six percent of the total trading for that five-day period.
There is no limit to how many day trades that you can make in a cash account as long as you are using settled funds.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Waqas Sarwar MVP Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/129544 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I have confusion about the day trading rules. From below scenario, which is pattern day trading? I bought 1 Apple share in pre-market and sell it in the after-market hours (within same day). I bought 1 Apple share around 11AM and sell it in the after market hours (around 6PM) I bought 1 Apple share in after-market hours (5PM) and sell it tomorrow in pre-market (8AM) I bought 1 Apple share in after-market hours (5PM) and sell it tomorrow in regular market (11AM) I bought 1 Apple share in after-market hours (5PM) and sell it tomorrow in after-market (6PM)
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