I am new to the stock market and the Day Trade. I need your help to clarify some definitions (from Fidelity):
- "A Day Trade is defined as an opening trade followed by a closing trade in the same security on the same day in a Margin account."
"the same security" ---- means the same stock? or it means all different stocks. For example, if I sell stock A and buy A again on the same day will be treated as a Day Trade pattern action, how about if I buy stock A and sell stock A on the same day?
If I sell stock A and buy stock B and buy stock C on the same day, do these actions will be treated as a Day Trade pattern?
- "A Pattern Day Trader designation requires a minimum Margin equity plus cash in the amount $25,000 at all times."
"minimum Margin equity" ---- what is this? Does this number come from the broker and tell me how much I can borrow?
"a minimum Margin equity plus cash in the amount $25,000" ---- how to read this section? it is "minimum Margin equity" + "$25,000 cash" or "minimum Margin equity + cash" = $25,000 ?
Another post said: The $25,000 amount is for equity in your brokerage account (cash and investments).
The investments here includes the existing settled stocks/mutual funds I bought? For example, If I have an account with $30,000 worth of stocks/mutual funds (on a specific day.) and $20,000 cash, does this meet the $25,000 requirement?
- I have two accounts (A1 and A2) in the same broker, can I maintain $35,000 cash in A1 and use A1 to meet the $25,000 requirement for A2?