Round Trip
Definition: The successful purchase and subsequent sale of forementioned purchased (stocks).
If you buy the same stock in three trades on the same day, and sell them all in one trade, that is considered 1 day trade. If you buy in one trade and sell the position in 3 trades, that is also considered 1 day trade. Three more day trades in the next 4 business days will freeze your account (you can only close existing positions) for 90 days, or until you get $25,000 cash into your account, whichever comes first. This also applies to options.
Read more about this topic: Pattern Day Trader
Famous quotes containing the word trip:
“Childhood is an adventure both for children and for their parents. There should be freedom to explore and joy in discovery. The important discoveries for both parents and children seldom come at the points where the path is smooth and straight. It is the curves in that path to adventure that make the trip interesting and worthwhile.”
—Lawrence Kutner (20th century)
“The Statue of Liberty is meant to be shorthand for a country so unlike its parts that a trip from California to Indiana should require a passport.”
—Anna Quindlen (b. 1952)