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Pattern day trading rules in US

Discussion in 'Stock Market Nuts and Bolts' started by mjim, Sep 14, 2016.

  1. mjim

    mjim Well-Known Member

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    Do pattern day trading rules apply for
    Futures only trading ( Index / Commodity and Currency)
    Options on Futures ( Index / Commodity and Currency)

    IB say following but does not expressly say if it applies to Futures or not?
    I mean futures traders scalp all the time with small a/c!

    Pattern Day trading rules apply to the following products:

    US Stocks, US Stock and Index Options, US Warrants, US T-Bills, US Bonds, or US Single Stock Futures
     
  2. tech/a

    tech/a No Ordinary Duck!

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    My understanding is that this applies to Stock Traders.

    I've been trading futures for years and so have many others with IB with no issues.
    Way over 6% of my capital
     
  3. minwa

    minwa Well-Known Offender

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    Yeah, equities only.
     
  4. mjim

    mjim Well-Known Member

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    This is what I got when I called IB
    Futures only no PDT applies no matter if it is cash or margin a/c
    Stock: The PDT only applies to Margin a/c and does not come in to picture with Cash a/c
    logic being the stock trades are settled in T+3 so
    Option : PDT applies to margin a/c only not to cash A/c
    However Options settled in T+1
    SO for example: if you have $10000 in account day trade a Option buy for $1000 and Sell for $1200 say in first half of the day or in fist hrs whatever the $1200 is not available for T+1
    Not sure I understand the logic ... key differential seems to be CASH or Martign T a/c
    My main interets in Futures and Options on Futures and ability to day trade without the $25K restriction
    Futures no problems but OPtions on Futures and PDT rules? I am confused

    If you have min 25K all this does not come in to picture
     
  5. minwa

    minwa Well-Known Offender

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    You are fine. Options on futures is part of futures market while options on equities is part of equities market. Stay in futures and you are excluded.
     
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