FINRA rules define a day trade as buying then selling (or selling short then buying) the same security on the same day. Stocks and options are both subject to day trade counts.
At TradeUP Securities, Inc., day trades are calculated based on the number of opening orders on that day.
For example, say you make the following orders:
(OPEN) Buy 15 shares of "XYZ"
(OPEN) Buy 15 shares of "XYZ"
(CLOSE) Sell 10 shares of "XYZ"
(CLOSE) Sell 10 shares of "XYZ"
(CLOSE) Sell 10 shares of "XYZ"
Your account would incur 2 day trades because there are only 2 opening orders.
Day Trading involves significant risk and is not suitable for everyone. Before engaging in day trading, carefully consider your investment objectives, experience level, and risk tolerance.
Still got questions? Contact TradeUP Customer Support by email at support@tradeup.com or reach out to us on Live Chat!