So if you sell all your XYZ shares, you will have the full purchase price ($6,000) credited back to your day trade buying power, regardless of how much you gained or lost on the XYZ trade. When these opening transactions are closed, you are credited back the opening price, and your gain or loss will affect the following trading day's day trade buying power and the current day's buy and hold buying power (a security you wish to hold overnight). In this example, you can buy 100 XYZ shares for $6,000, and 100 ABC shares for $4,000. Here's an example: if you start the day with cash plus firm maintenance excess of $3,000.00, your day trading buying power would be $10,000.00 ($3,000.00/0.30 = $10,000.00). That sum is then divided by your broker's margin requirement for the security you are day trading, which at Merrill is normally 30% for fully marginable securities (those trading over $10.00 a share or listed on a major exchange). Your day trade buying power is calculated by adding the firm maintenance excess (FME), which are funds above the minimum required for the securities in your account, to available cash. Which means you will likely have a new buying-power amount every morning. Your day trade buying power is always determined on close of business values. Day trading buying power: The rules for pattern day traders also affect the dollar amount you can buy and sell in a single day.If your account falls under this minimum, your account will be restricted until you've deposited enough cash or securities to meet the minimum equity requirement. This can be a mix of cash and securities. Minimum equity requirement: As a pattern day trader, you are required to hold a minimum of $25,000 in your account at all times.
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