Okay so if I buy a stock and I sell it in the same day, is that the only way it would be considered a day-trade? Are options subject to this rule as well.
Also, the five day period: is that Mon-Fri, or is that five consecutive trading days?
A daytrade is the opening and closing of the same position on the same day. If you execute 4 or more daytrades in any 5 business day period (doesn’t have to be Mon-Fri), you’ll be labeled a pattern daytrader. Yes, this applies to options too.
A daytrade is the opening and closing of the same position on the same day. If you execute 4 or more daytrades in any 5 business day period (doesn’t have to be Mon-Fri), you’ll be labeled a pattern daytrader. Yes, this applies to options too.
References :