Ways to Avoid Getting Day Trade Calls
A few tips and recommendations to help you manage your day trading and avoid day trade calls:
- Pay attention to your day trading buying power number at the start of the day.
- Day trading, and position trading at the same time, makes a trader more susceptible to generating DT calls. The number one cause of DT calls is day trading on the proceeds from closing overnight positions. In general, a customer, who is not in aggregation, and who comes into the day with no overnight positions has a much smaller likelihood of generating a DT call.
- If you plan to day trade disable the Money Market sweep. Money market funds may not be used by Pattern Day Traders to satisfy day trading buying power requirements.
- When day trading spreads, enter into the trade, and close out of the trade, contemporaneously. Closing spreads with multiple orders will increase the day trade charge.
- Be aware of the rules for day trading naked options.