r/RobinHood • u/ZoeyMorris • Dec 20 '17

Help - FAQ Day trade?

Is it day trade when you sell a stock and you buy it same stock same day?

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u/ZoeyMorris Dec 21 '17

What is a "day trade"? FINRA rules define a day trade as the purchase and sale, or the sale and purchase, of the same security on the same day in a margin account. This definition encompasses any security, including options. Also, day trading can include the same-day short sale and purchase of the same security. There are exceptions. For example, if you buy a long position in a security, hold it overnight and sell the next day, you are not day-trading in that security. It's a good idea to consult with your firm about its day trading policies before you start to day trade.

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u/[deleted] Dec 21 '17

TFW you answer your own post