Good evening everyone,
I just recently passed the milestone of 6 months of intense and dedicated Day Trading training and was hoping to go live with a small size very soon. I always thought (through little pieces of information i read here and there) that because i live in Canada, the Pattern Day Trading Rules (PDTR) would not apply to me, but now that the real thing is getting closer i thought i would dig a little deeper and it appears that maybe regardless of whether or not i live in Canada, because the stocks are being exchanged through the US i will need the 25K in my account (which i do not have) in order to not be affected by PDTR.
I believe Andrew mentioned this in the book and Robert H mentioned this in someone else thread (Tading w/ Less Than $25K (HELP!), posted Feb 25) that something along the lines of us being Canadians, we are not required to follow the same rules.
However, even right on the IB website the following is stated,
" How does the SEC day trading rule affect Canadians?
Because your U.S. securities exchange trades are cleared in the US, the SEC Pattern Day Trading rules are applicable. In this regard, if you effect 3 stock or equity option "day trades" on a US securities exchange within a 5 day period, IB Canada will designate you as a "pattern day trader". The "pattern day trader" designation will require that you maintain a minimum of $25,000 (US dollars) to continue trading."
So i was hoping to get some clarification on if i will be okay to trade with less then 25K, or if not if there are any loop holes. Would it be better to keep my margin account and only make 3 trades every week (all 3 could easy go against me) or make it a cash account and just try to build my account by only finding long plays? starting to get a little worried, Ive worked so hard to get to this point.
Any and all information that would be of use would be greatly appreciated.
Thanks so much in advance,
Tym
