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.

Please see our article on wash sales for information on holdings sold at a loss and repurchased within 30 days.

 

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. 

 

 

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M1 disclosures here.

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