I’m unable to close my position due to PDT restrictions. However, i don’t have a margin account. The balance is less than 2000, per your docs, this is a cash account. Why am i having these rules apply to me? How can i exit this position?
@giandee All Alpaca accounts are margin accounts and subject to the FINRA rules on day trading. Alpaca doesn’t offer cash accounts. Normally one is extended 2x margin, however if one’s equity drops below $2000, only 1x margin is extended. This is termed ‘limited margin’ since the account can still trade on un-settled funds. All accounts are extended funds to cover unsettled funds for immediate trading.
That said one can have up to 3 day trades in a rolling 5 day window. If you need to exit a position immediately, you can as long as you do not go over that quantity. To remove the PDT protection for closing a position, select Block on Entry and not Block on Exit as shown below.
Thanks, Mine was already set up like that. Wonder why i didn’t get blocked entering the position?
seriously disappointed that cash accounts arent allowed this ruined my day trade strategy with my small account
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