Margin account - settle funds

[kevin_]

Hi

I have an margin account with less than 25K$.
I understand the daytrading rule, but the thing i dont understand is the settlement of funds:
Let's give this example, i have 10K$ available to trade and i buy on Monday 10k$ worth of stock ABC, i sell on Tuesday for a profit. Then, on that same day (Tuesday) i want to buy 10k$ worth of stock XYZ and sell the next day (Wednesday) for a profit.
Is that possible, or i do have to wait for funds to settle from the first buy os shares ABC.

Thanks

Kevin_

[mrmarket]

I have never bought stock on margin. Sorry can't help you with that one.

[Deaddog]

Hi

I have an margin account with less than 25K$.
I understand the daytrading rule, but the thing i dont understand is the settlement of funds:
Let's give this example, i have 10K$ available to trade and i buy on Monday 10k$ worth of stock ABC, i sell on Tuesday for a profit. Then, on that same day (Tuesday) i want to buy 10k$ worth of stock XYZ and sell the next day (Wednesday) for a profit.
Is that possible, or i do have to wait for funds to settle from the first buy os shares ABC.

Thanks

Kevin_

You shouldn't have to wait with a margin account. If trade one settles before trade #2 you will have cash in the account before the settlement day.

I highly recommend that you learn exactly what will happen in your account before you start to trade. A call to your broker should do the trick.

[kevin_]

I had an account with more than 25K$, but now that i got under that value, had to give up of daytrading because of the minimum of 25K$ required.
So now, it's all new to me, have to build up my account to get over 25K again.
The big question here is: on a margin account does the money settles after i sell something for next day buy other stocks, or i do have to wait 3 days.

[Deaddog]

No you don't have to wait 3 days.

[Karel]

I had an account with more than 25K$, but now that i got under that value, had to give up of daytrading because of the minimum of 25K$ required. ...

Errm, shouldn't you take that as a warning? Seriously.

When I opened an account, I went for a margin account precisely because you don't have to worry about settlement dates. But I realize I don't know what happens if you invest all your money in one stock (absolutely inadvisable), sell, and want to buy a new one before the settlement date, as you won't have any collateral then for a margin buy.

Regards,

Karel