> What are the rules for option day trading?

What are the rules for option day trading?

Posted at: 2014-12-05 
Does option day trading require 25k minimum equity? What else does it require?

There are no formal arules for the day trading of options, however since options can not be used for margin all purchase must be paid in full before they are sold and you can not use the proceeds of the sale to cover the purchase.

However before you can trade in option seucrities you must be first approved by your brokerage firm. Most firms will restrict new accounts as to what they can do in options - day trading is one function you will not receive approval.

So you DO NOT need 25,000 in minimum equity but if yoiu'r going to try to day trade options you should have sufficient capital.

Also options since they are not marginable they are not figured into the calculation of account equity

ASHOK - once again you have displayed that you have no idea of what you're talking about and have little or no industry experience

The episle you wrote has, as usual, nothing to do with the question being asked, a lot of words but not addressing the subject matter.

Option trading requires option trading privileges. It is possible, but not easy, to do an OCCASIONAL option day trade with a margin account that is of total value less than 25k. Not recommended.

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Does option day trading require 25k minimum equity? What else does it require?