User talk:Trader10

A round trip occurs in trading when you open and close a position in the same trading day.

Ex. Buy 100 shares of GE and sell 100 shares of GE on the same day = 1 round trip

Round trips are an important thing to consider as to not violate the rules related to pattern day trading. To have more than 3 round trips in 5 business days requires you to have a margin account with at least 25,000 in equity and be designated as a pattern day trader. If you have an account less than 25,000 dollars and wish to keep your day trades at no more than 3 in a 5 busines day period take note of the following examples as well.

Ex. Buy 50 shares of GE, buy another 50 shares of GE and sell all 100 on the same day = 2 round trips

Ex. Buy 100 shares of GE and sell 50 shares of GE and another 50 shares of GE later in the day = 1 round trip