Can I buy and sell the same security in a day?

Buy and Sell orders placed for execution during a single trade window for a specific symbol will be netted. A single order (buy or sell) will be entered if an imbalance between the buy and sell order exists. 

For example, if a customer places a buy order for $50 of ABC security and a sell order of $45 of ABC security for execution during M1’s morning trade window then a trade will be executed to purchase $5 of ABC security. 

If your account value is less than $25,000, you will not be able to trade in both trade windows. This restriction is in place to prevent you from placing a day trade in your M1 account. If your account executes day trades with less than $25,000, your account can potentially be flagged for pattern day trading. If you make four or more day trades in a five business day period, you will be flagged as pattern day trader and your account will be restricted for 90 days. 

If your account value is greater than $25,000, you will be able to execute a buy trade in the AM window and a sell trade in the PM window for a specific security or securities. * 

 

According to FINRA, “day trading refers to buying then selling the same security on the same day." 

Learn more about day trading rules and regulations via FINRA. 

 

*You will need to be enrolled in M1 Plus to have access to the PM window. 

 

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