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:
“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)
“Put in hours and hours of planning, figure everything down to the last detail, then what? Burglar alarms start going off all over the place for no sensible reason. A gun fires of its own accord and a man is shot. And a broken-down old house no good for anything but chasing kids has to trip over us. Blind accidents. What can you do against blind accidents?”
—Ben Maddow (1909–1992)