can i short sell and buy the SAME share twice or thrice in ONE day or in Intraday ?
for example
Transaction Quantity Amount
Shortsell 100 * $50 = $5000 at time 10:00 AM
buy 100 * $45 = $4500 at time 11:30 AM
Shortsell 50 * $50 = $2500 at time 1:00 PM
buy 50 * $40 = $2000 at time 3:30 PM
and now i want to short sell again the same ebay shares twice or thrice in one day or in intraday.
is it allowed to trading like this ??
Make sure that when you close the short position you "cover" rather than "buy." If you just buy you open a new position and be long and short.
Also, if you have a loss it is not disallowed. If you have a loss and then trade the same stock within 31 days, the loss is deferred. The loss is used to adjust your basis on the subsequent transaction.
Also, be aware that trading that way will quickly get you labeled as a pattern day trader. (4 or more day trades in any 5 consecutive business days earns you that labeled.) At which point you must have a margin account and maintain a minimum balance of $25,000.00.
The above is for trading in the US.
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