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:
“And now that the end is near
The segments of the trip swing open like an orange.”
—John Ashbery (b. 1927)
“[A trip to France] will make you adore your own country, it’s soil, it’s climate, it’s equality, liberty, laws, people and manners. My God! How little do my countrymen know what precious blessings they are in possession of, and which no other people on earth enjoy.”
—Thomas Jefferson (1743–1826)