So, I tried doing some research on Google, and I just need a real person to verify what I learned, and still have questions about.
Day trading is doing more than three trades in a “rolling” 5 day period. What exactly does that mean? I assume this means if I make a trade on Monday, Tuesday, Wednesday, does that mean I can't make even one trade until Monday, and even then, only one trade, because it hasn't been five days since the Tuesday and Wednesday trade? This is really just something for my curiosity since I plan to use a cash account.
Anyway, for my next questions, since I'm using a cash account… What is the difference between day trading and freeriding?
For example, if I'm using a cash account, can't I buy a stock and sell it the same day, since cash accounts are allowed to day trade? But if I do that, then the cash wouldn't be settled since there's a T+3 settlement period, so that would be freeriding, wouldn't it?
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