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?
- 4 years agoBest 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 day
- Anonymous3 years ago
1Source(s): Binary Market Secure Success http://netint.info/AdvancedTradingTechnology
- 4 years ago
Why would you buy it again? If you just made profit and buy it again its like you made nothing.Since the first time it was $1, if you make $50 from the $0.50 it went up, to rebuy the same amount of stock it would cost you the $50 you made and your right back where you were before you sold.
- A nobodyLv 74 years ago
YES you can as long as the initial purchase is paid in full, and you can not use the proceeds of the sale to cover the purchase. You will also have the money you account to cover subsequent purchase done on the same day and any additional trades made before the settlement day of the first trade.
"Steve" read the law again, you are wrong, you DO NOT need $25,000 in your account , but if you did have that much, the purchases in the example would be considered paid in full -this is the lawSource(s): from the Street
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- BobLv 74 years ago
sure as long as you have enough cash to make another purchase. You will NOT receive the money from your stock sale until 3 days later... (the transaction has to clear)
- zman492Lv 74 years ago
(1) you have a cash (as opposed to margin) account, you violated the free-riding rule and you do not have enough settled cash in your account to make the second purchase
(2) you have previously made enough day trades that you are considered a pattern day trader and you do not have a margin account worth at least $25,000.Source(s): http://www.sec.gov/answers/freeride.htm http://www.sec.gov/investor/alerts/cashaccounts.pd... http://www.sec.gov/answers/patterndaytrader.htm
- BarneyLv 54 years ago
I agree with "A Nobody" their answer is correct.
And "Steve" you have idea what your are talking about this is no rule requiring you to have $25,000 in your account - you are confused with the "pattern trader" rule which addresses $25,000 in equity not balance and/or deposit
- Anonymous4 years ago
- SteveLv 64 years ago
You can do that but you must have at least $25,000 in your brokerage account. Thats the law.