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:
“We are not very much to blame for our bad marriages. We live amid hallucinations; and this especial trap is laid to trip our feet with, and all are tripped up first and last. But the mighty Mother who had been so sly with us, as if she felt that she owed us some indemnity, insinuates into the Pandora-box of marriage some deep and serious benefits, and some great joys.”
—Ralph Waldo Emerson (1803–1882)
“A trip through a sewer in a glass-bottomed boat.”
—Wilson Mizner (1876–1933)