This article explains how same-day buy and sell orders work, pattern day trading rules, and common questions about buying and selling the same security within a single day.
How buy and sell order are processed?
If you place both a buy and a sell order for the same security during the same trade window (AM or PM), M1 will net the orders. Only your net order will be executed.
Example: If you enter a buy order for $50 of XYZ and a sell order for $45 of XYZ for the same window, M1 will process a single buy order for $5.
M1 offers one or two trade windows per day, depending on your account’s level of equity.
Trading in multiple windows and pattern day trading rules
Accounts with less than $25,000 in settled equity:
You cannot place trades in both the AM and PM windows for the same security in a single day.
This rule helps prevent day trading, which is regulated by FINRA.
Learn more about day trading rules and regulations via FINRA.
Accounts with $25,000 or more in settled equity:
You may place a buy order in the AM window and a sell order in the PM window for the same security on the same day.
However, executing four or more day trades within five business days may flag your account as a "pattern day trader" and result in temporary restrictions (typically 90 days).
Note: Day trading means buying and then selling the same security on the same day.
Tip: Review your available settled cash or settled equity before placing trades if you intend to conduct multiple transactions in a day.
Wash sales and tax considerations
If you sell a holding at a loss and buy it back within 30 days, you may be subject to IRS wash sale rules.
Brokerage accounts on the M1 platform are either fully disclosed to APEX Clearing or cleared through M1 Finance LLC. Please look at your account statement to determine how your account is cleared.
All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future performance. Using margin can add to these risks. Users utilizing APEX cleared margin accounts should review the APEX margin account risk disclosure before borrowing. Users utilizing M1 cleared margin accounts should review the M1 margin account risk disclosure before borrowing. M1 Margin Loans are available on margin accounts with at least $2,000 invested per account. Not available for Retirement or Custodial accounts. Margin rates may vary.
Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.
This content was generated using artificial intelligence and is intended for informational and educational purposes only. While reasonable efforts are made to ensure accuracy, AI-generated outputs may omit key context; and should not be construed as financial, investment, legal, or tax advice. Users should independently verify all information and consult a qualified professional before making any financial decisions.
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