Uma asked in Business & FinanceInvesting · 6 years ago

Online Stocks Trading: Is this a Good faith violation?

Is this a Good faith violation?

On Monday morning, Cash available to trade = $20,000.00

On Monday morning, customer buys XYZ stock for $10,000.

Later, on the same day, customer sells XYZ stock netting $10,500 in cash account proceeds.

Later, on the same day, customer buys ABC stock for $20,000.

Later, on the same day, customer sells ABC stock netting $20,500 in cash account proceeds.

(Now, Cash available to trade = $21,000.00)

Later, on the same day, customer buys ABC stock again for $20,000.

Later, on the same day, customer sells ABC stock netting $20,500 in cash account proceeds.

(Now, Cash available to trade = $21,500.00)

2 Answers

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  • Biff
    Lv 7
    6 years ago
    Favorite Answer

    you won't be allowed to sell the 2nd time that fast - that's a violation - you have to wait 3 days for the funds to settle from the first sale - only way you can get around it is with a day trading acct - that requires $25,000 to start - and you have to keep track of the profit/loss on each individual buy/sell round trip trade for tax reporting

  • 5 years ago

    A lot of interested traders are asking themselves the question if you can really make money with binary options? The answer is that you can indeed make money in binary options trading. Learn here https://tr.im/4Lj0I

    Obviously this is a perfectly legitimate question considering that most people have not traded binary options in the past and generally believe that investing is a very difficult activity.

    However, you will have to put an effort into it. You will have to learn money management, reading of charts as well as the usage of indicators.

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