Options Trading Tutorial

questions about TDameritrade day trading?

i heard that most trading accounts with 25k are not restricted by the 3 day transaction time after the sale of a stock since if an account has more than 25k it would qualify as a day trading account. how does that work? do you have to fill out some forms like margins/options etc? does tdameritrade do that as well? cuz i heard that scottrade gives u ur money back immediately if u have over 25k another question i have is the fees said its 9.99 per trade... "Orders executed in multiple lots on the same trading day will be charged a single commission. When an order is partially executed over multiple trading days, the order is subject to a separate commission charge for each trading day." what does it mean by multiple lots? does it mean if i buy 100 shares of abc and another 100 shares of abc do i pay 9.99 or do i pay 19.98? thx for any clarification

Public Comments

1. With $25k in your account you can day trade all you want. Because of the margin you now have, you don't have to wait for the 3 day rule. Ameritrade will take care of you...contact their customer service and they'll make sure all the paperwork is taken care of. Don't get too confused over the multiple lot thing. It just means that if you wanted to buy 200 shares of ABC and they had to do it for you in 2 separate transactions, you'll only be charged for 1 transaction. This is provided they can get the shares at the same price. Different price means a separate transaction cost. Now if, like in your example, you wanted to buy 100 ABC shares, and then later on in the day you wanted buy another 100 ABC shares, that's another transaction and another cost. Hope that helps you some....
2. As for commissions, if you place an order for 100 shares of a stock, but only 50 shares can be filled today, and the rest tomorrow, you'll be charged two commissions -- one per day. That's usually only an issue for penny stocks. But quite often, you'll have an order that's partially filled, and then completed a few minutes later. In that case, you'd only pay one commission.