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:
“Harvey, Jr.: Say, Dad. Suppose you could lend me fifty for the trip home?
Harvey: I hate these emotional farewells.”
—Tom Waldman (d. 1985)
“When the red-cheeked, dancing girls, April and May, trip home to the wintry, misanthropic woods; even the barest, ruggedest, most thunder-cloven old oak will at least send forth some few green sprouts, to welcome such glad-hearted visitants.”
—Herman Melville (1819–1891)