Stock Trading and Other Things

Pattern day trading $25k requirement?

Can the $25k be cash only in the margin, a combo of both or just securities? Can I buy on margin and buy-down the margin the same day and not pay interest at all, but going around the 3-day settlement rule? I've been trading in cash account, about $70k, but want to avoid the 3-day settlement.

Public Comments

1. You must maintain and equity balance in a margin account of $25k. In other words, you need to have a margin account that if you liquidated all of your securities and paid off any debit balance owed, you would be left with at least $25k.

2. http://www.daytrading.net/pattern-day-trading-rule/