I'm from outside USA and my question is after I find the 25k$ to be able to trade with lightspeed what will happen if my account drops below 25k? Will I be able to trade after it drops under 25k or not
If an account is designated as a Pattern Day Trading account and falls below the $25,000 requirement the account would be restricted from opening any new positions and buying power would not be available. If the account is unable to be funded back above $25,000, you would have the following options: 1. We do allow for a PDT reset request of the account status to remove the Pattern Day trading (PDT) designation. This would allow you to resume trading on margin, but you would have to monitor the amount of day trading done in the account. You would not be able to exceed more than 3 day trades in any 5 day rolling period (trading days only). If the account balance goes back above $25k, you would be able to resume full day trading. 2. You can request to convert your margin account to a Cash account. This would allow you to trade with the funds that are available in the account on a 1 to 1 cash basis. All trades would have to complete the full 2 day settlement process before the funds are returned for re-investing. Option trades do settle in 1 day. Additionally, short sales are not permitted in the account. **Please note you cannot switch back to Margin for 90 days.
I'm from outside USA and my question is after I find the 25k$ to be able to trade with lightspeed what will happen if my account drops below 25k? Will I be able to trade after it drops under 25k or not
If an account is designated as a Pattern Day Trading account and falls below the $25,000 requirement the account would be restricted from opening any new positions and buying power would not be available.
If the account is unable to be funded back above $25,000, you would have the following options:
1. We do allow for a PDT reset request of the account status to remove the Pattern Day trading (PDT) designation. This would allow you to resume trading on margin, but you would have to monitor the amount of day trading done in the account. You would not be able to exceed more than 3 day trades in any 5 day rolling period (trading days only). If the account balance goes back above $25k, you would be able to resume full day trading.
2. You can request to convert your margin account to a Cash account. This would allow you to trade with the funds that are available in the account on a 1 to 1 cash basis. All trades would have to complete the full 2 day settlement process before the funds are returned for re-investing. Option trades do settle in 1 day. Additionally, short sales are not permitted in the account.
**Please note you cannot switch back to Margin for 90 days.