Growing very tired of PDT restrictions, what are my options for getting around it?


I’ve been trading for a year and trading within these restrictions is really getting on my nerves, especially in the current market.

From those of you that started out with small accounts and broke free of this, what is the best way to get out? And by small I mean keeping trades under $1000?

I trade options daily and I’ve limited my moves to around $400 per move while I learn. I lost $6k in my first 7 months. Y/o/Y I’m down $1700. The majority of my early losses have some type of PDT implication ie: holding gains too long b/c I didn’t want to burn a day trade etc. or not being able to get out of a trade at all.

Now that I’ve traded for a while I’ve been doing a combination of overnight moves (usually straddles), using multiple brokerages, and hedging to get around it. It’s all very annoying and adds an extra unnecessary layer of planning and strategy, to an already difficult market. I hate PDT with a passion.

Cash only accounts take too long to settle and screws up my timing.

Offshore accounts ala Tiger charge excessive amounts per trade and are riskier and not preferred.

I was considering saving up/depositing $13,000 and doing a margin account, filling in the other $13,000 and continuing to trade with my $1000 limit. I’m disciplined and wouldn’t touch the $25k but I’ve never done margin before. Would this even work or do you need $25k cash deposited still vs $13k + $13k margin?

Any other recommendations?


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