- If I can buy it on 5/2, when can I then sell it?
What are the regulations governing this? (BEST ANSWER will be chosen based on a legitimate link)
It is a margin account, if that makes any difference…
Your example is not considered day trading since you did not buy and sell the same security on the same day
You can buy on 4/30, then sell it on 5/1 an buy it back on 5/2 and sell it either on 5/2 or whenever you want
BUT you can not sell a stock unless it have been paid for in full and you can not use the proceeds of the sale to cover the purchase,
So if you bought on 4/30, the stock must be paid in full by 5/1 (when you sold it). If you didn't pay for it, your account would be restricted for 90 days or until monies are received in to pay for the purchase in full
If you buy it back on 5/2, the 4/30 purchase had to be paid in full,
The payment for the purchase of securities is governed by the Federal Reserve under Regulation T All brokerage regulators have rules governing the timelyness of the receipt of monies to cover purchases
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