Stock Daytrading question?

So my online stocktrading firm calls me and tells me in violation of freeride clause. basically I was buying and selling way too fast. I was told that i need to wait 3 days after the trade clears.

Is there some other form of trading like margin or something where I can actually buy and sell, buy and sell all in the same day?

Public Comments

1. This sounds like a policy with your firm; however, I'd have to look at the policies they use internally.

From what I interpret from the following, you should be able to buy and sell a security 3 times in a week w/o being subject to day trading status.

I was able to buy and sell the same security via Scottrade last week more than once during the same day without limitations; however, I have a margin account and maintain the minimum listed below.

[ The FINRA definition under rule 2520, defines a pattern day trader as "any customer who executes four or more day trades within five business days, provided the number of day trades is more than 6% of the total trades in the account during that period”.
...
Higher equity requirement. The minimum equity requirement for pattern day traders will be $25,000.

Clarification on the term day trade. Redefines the term "day trade" to treat the sale of an existing position held from the previous day as a liquidation, and the subsequent repurchase of that position as the establishment of a new position not subject to the day trading margin requirements.

Day Trading Buying Power. Day trading buying power is calculated based on the customer's account position as of the close of business on the previous day. The amendments limit day trading buying power to four times the day trader's maintenance margin excess.

Margin account requirement. All patterned day trades must be placed in a margin account. Trading in a cash account is limited to available settlement date balances in accordance with Regulation T and FINRA Rule 2520. ]

2. You haven't got enough $ in your account.You need an additional $25,000 to day trade, which is money that can't be used for other trades. Talk to your broker and get the facts. This even happens with options positions, which is really crazy, because your risk is pre-determined when you buy puts and calls. It would make sense if you sell puts or calls, because your risk is unlimited, but, those are the rules.