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.
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.
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