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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

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17y ago

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In trading stocks what does a round lot represent?

1000 shares.


What is the standard trading unit for sales and purchases in stocks?

100 shares, which is called a round lot.


Where can you find some guidelines for trading stocks?

A professional investment adviser could help answer your questions on trading stocks. Alternatively, taking a class or short course could help you understand the guidelines of trading stocks.


Do you typically buy at the bid or ask price when trading stocks?

When trading stocks, most people buy at the ask price.


How do you short stocks?

how to short stocks


Is the Motley Fool a good Web site for a beginner for information about trading stocks wisely?

No, the best site for people to find information about trading stocks wisely is Scotttrade.com.They offer the best beginner information about the subject. Motley Fool can be an informative tool to learn about trading stocks, but one website alone should not be used to learn about trading stocks. I recommend researching on Marketwatch.com and checking out the local book store to different beginners' guide to trading stocks.


Where can oriental trading of stocks be carried out?

There are a few companies that deal with trading Oriental stocks. Berkshire Hathaway and DealTime seem to be the two most common companies that do Oriental stock trading.


How is the trading in the stocks of major corporations regulated?

stocks are traded in the market which is regulated by government


What are the computer requirements for trading stocks?

No particular system requirements are needed for trading stocks; people have been doing on computers for over 20 years.


What is the definition of Options Trading Education?

Options Trading Education is meant to teach potential traders the basics of trading stocks, the different types of stock trades you can make and how to select individual stocks.


Will day trading software work for foreign stocks?

Yes day trading software will definitely work for foreign stocks. You are still trading, are you not? Yes you can use them. I would double check also if its irritating you


Where can one find penny trading stocks?

Penny trading stocks can be found on a number of websites online. Global Penny Stock is one of the more well known options for people interesting in this form of stocks.

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