buy n sell same stock n buy same stock again same day?
Lets say I buy a stock @ $1 and sell it same day @ $1.50 can I rebuy same stock, same day and sell it again?
- A nobodyLv 79 years agoFavorite Answer
YES you can buy and sell the same day HOWEVER, the rules are that if you buy you must pay for the purchase in full, and you can not use the proceeds of the sale to cover all or part of the purchase.
As long as the purchase is paid in full you can buy and sell all you want. You will have to address the pattern trading tag. which could force you to maintain $25,000 equity at all times in a margin account which you must open. HOWEVER penny stocks are not marginable but if you are tagged as a pattern trader you will be subject to the rules.
So to answer your question directly YES you can buy, sell, buy sell as long as you make payment in full for your purchases and such payment is made prior to the sale.
JOHN W – All trades, whether they be done in a cash or a margin account settle in three business following the trade date since the entire industry post trades as of the settlement date. A seller DOES NOT have 3 days to deliver to the buyer, on settlement date all trades are to settle and they do not settle until then. In a margin account, the broker DOES NOT have to borrow to make deliver if a stock is bought and sold prior to settlement daySource(s): from the street.
- 5 years ago
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- John WLv 79 years ago
Trades take three days to settle so when you buy a stock, the seller has three days to deliver the stock to you. However if you have margin on your account, your broker will allow you to borrow stock to sell which is then replaced with stock that you've previously bought when the trades settle. If you buy and sell stock in the same company more than a certain number of times a week, the SEC will deem you a pattern trader and your account will be frozen for a period of time unless you have $25,000 of equity in it.
Trading in stocks that are priced that low isn't advisable and are usually done by people who are foolish enough to trade the ability to properly estimate the company's prospects for seemingly greater potential for gain.
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- Common SenseLv 79 years ago
yes if if either applies;
You have a margin account
You have enough cash to cover the purchase no including the proceeds from the sale.
Hopefully you're not trading penny stocks..... It generally takes 3-5 years to learn day trading... it can take more with penny stocks.
If your account is below $25,000 beware of the "pattern day trading rules".
- Anonymous9 years ago
what would be the sense?
why would you even bother selling if you were just going to re-buy it? you just wind up paying additonal sales commissions
stock sales take at least a couple of days to settle before that money is available to re-invest
- Anonymous9 years ago
T-3...research itSource(s): http://buyastockattherighttime.blog.com/