Presentation on theme: "Paul Oldani, Bill Sullivan, Trade Desk Manager Senior Margin Specialist."— Presentation transcript:
Paul Oldani, Bill Sullivan, Trade Desk Manager Senior Margin Specialist
margin equity < $2000 = Aggregation Status Did You Know, #1 Aggregation: The total of all day trades cannot exceed your starting day trade buying power
Did You Know, #2 ACH Deposits Held for three business days before funds are available for trading
Did You Know, #3 Receive a buying power or “suitability” warning when trying to close long stock? Confirm you do not already have an open order to sell the position.
Did You Know, #4 At Expiration: Typically, traders must close all short sides of an iron condor/butterfly because requirements will exceed buying power.
Did You Know, #5 Cash Accounts Can NEVER: 1. Short stock 2. Sell naked options 3. Trade option spreads (unless you are an IRA with a COA) Margin Accounts Can’t do “Everything”
Did You Know, #6 Are subject to settlement requirements. Cash Accounts
Did You Know, #7 Margin Calls May not always be satisfied on a dollar-for-dollar basis (when closing positions)
Did You Know, #8 Selling (an option or spread) Cash will automatically be credited to your cash balance but reflected as a negative in your portfolio balance Net change to account value = zero Price from this point = profit (loss) on the trade
Did You Know, #9 Equity Margin Calls Day-Trading Calls
Did You Know, #10 “Last Price” Mid-point of NBBO (National Best Bid and Offer) Note: Our clearing firm uses the official OCC closing prices. This can cause discrepancies in account values.
Did You Know, #11 Virtual Accounts Trades will NOT be exercised or assigned Quotes are delayed by 20 minutes (if “real” account is not funded)
Did You Know, #12 1:00 pm CT Cutoff time for withdrawing funds on the platform (Note: Email and fax transactions are not guaranteed same-day processing)
Did You Know, #13 There are new day trading requirements for option trades Check your message center for full details!
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