Was ist daytrading
Day trading also applies to trading in option contracts. Forced sales of securities through a margin call count towards the day trading calculation. Under the rules of NYSE and Financial Industry Regulatory Authority , a trader who is deemed to be exhibiting a pattern of day trading is subject to the "Pattern Day Trader" rules and restrictions and is treated differently than a trader that holds positions overnight.
In order to day trade: Any legal restrictions on speculation permit to limit an activity that is negative with respect to moral-religious principles. The rule provides day trading buying power to up to 4 times a pattern day trader's maintenance margin excess. The excess maintenance margin is the difference of the account equity and the margin requirement. If the account has a margin loan, the day trading buying power is equal to four times the difference of the account equity and the current margin requirement.
If a client's day trading margin requirement is to be calculated based on the latter method, the brokerage must maintain adequate time and tick records documenting the sequence in which each day trade is completed. Time and tick information provided by the customer is not acceptable. The Pattern Day Trading rule regulates the use of margin and is defined only for margin accounts. Cash accounts, by definition, do not borrow on margin, so day trading is subject to separate rules regarding Cash Accounts.
Cash account holders may still engage in certain day trades, as long as the activity does not result in free riding , which is the sale of securities bought with unsettled funds. An instance of free-riding will cause a cash account to be restricted for 90 days to purchasing securities with cash up front.
During this day period, the investor must fully pay for any purchase on the date of the trade. Requirements for the entry of day trading orders by means of "pattern day trader" amendments: While all investments have some inherent level of risk, day trading is considered by the SEC to have significantly higher risk than buy and hold strategies.
The Securities and Exchange Commission SEC approved amendments to self-regulatory organization rules to address the intra-day risks associated with customers conducting day trading.
The rule amendments require that equity and maintenance margin be deposited and maintained in customer accounts that engage in a pattern of day trading in amounts sufficient to support the risks associated with such trading activities. In other words, the SEC uses the account size of the trader as a measure of the sophistication of the trader. This rule essentially works to restrict less sophisticated traders from day trading by disabling the traders ability to continue to engage in day trading activities unless they have sufficient assets on deposit in the account.
On the other hand, some argue that it is problematic not because it is some sort of unfair over-regulatory attack on the "free market," but because it is a rule that shuts out the vast majority of the American public from taking advantage of an excellent way to grow wealth.
Another argument made by opponents, is that the rule may, in some circumstances, increase a trader's risk. For example, a trader may use 3 day trades, and then enter a fourth position to hold overnight. If unexpected news causes the security to rapidly decrease in price, the trader is presented with two choices. One choice would be to continue to hold the stock overnight, and risk a large loss of capital. Day trading software is computer software intended to facilitate day trading of stocks or other financial instruments.
Day trading software falls into three main categories: Data, Charting , and Trade Execution. In the case of stocks and futures, those prices come from the exchange where they are traded. Forex is a little different as there is no central exchange.
The vast majority of day traders will chart prices in some kind of charting software. Many charting vendors also supply data feeds. Charting packages all tend to offer the same basic technical analysis indicators.
Advanced packages often include a complete programming language for creating more indicators, or testing different trading strategies. Once traders have their data and can see and analyze it on a chart, they will at some point want to place a trade. To do so, they need to use some kind of trade execution software or electronic trading platform.