You need a margin account. This is a special type of account, where you can take out loans from the broker.
Relax. You aren't going to be using this for betting on margin. You are in control. Not me. I'm not going to sneak into your account and bet on margin. The margin account allows you to day trade. Otherwise, you have to wait 3 days for the money to clear on your most recent stock trade. That is a major problem, since we need to be able to trade at a moments notice.
The reality here is that you actually still are following the 3 day rule, but because you have a margin account you take out small loans behind the scene to give you the illusion of having enough money to continue trading.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment