So I have recently made some trade that were very profitable and allow me the minimum required funds to day trade.
I am currently using etrade as my broker and was flagged yesterday for 2 day trades. I am confused on the option of setting up a pattern day trade account and wanna the pros and cons and possible tax implications.
I do like the ability to flip options and certain stocks as the markets volatility has increased significantly the last 2 weeks so I will most likely be doing this 3 4 times a week.
My questsions are what is the benefit of have a day trade account? Etrade stated it would give me 4x margin and allow me to trade using unsettled funds (this is not something I'm necessarily interested in). I have read there are different tax rules for pdt accounts as well…but my main concern is just not being placed liquidation only because I wish to capitalize on a profitable move I made same day.
Any help or information would be appreciated
Leave a Reply