QuestEons
QuestEons Mar 26, 9:13 AM

@Rick14 Ah, Thank you for that information I was not aware.

dckeener
dckeener Mar 26, 3:34 PM

Cash account isn't subject to PDT, but you can only trade with settled cash. Cash usually takes 3 days to settle after a trade.

QuestEons
QuestEons Mar 27, 6:31 AM

@dckeener - I see. So any profits I make in a trade wouldn't be able to be reinvested into other trades until it has settled. So indirectly my trading would be limited until the account has grown some anyway.

rickp461
1
rickp461 Mar 27, 1:31 PM

@QuestEons The entire traded amount is held as unsettled, you could reinvest it if you want. eTrade will give you a warning about selling the trade with unsettled cash. They (eTrade) has been pretty good about settling the trade within 2 days. I like it because it keeps me from over trading. It's not as restrictive as the PDT rule obviously but if you are disciplined about it you'll be fine while you learn and trade. Hopefully one of these days I will start to profit more than I am...but I

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