The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “Can you sell and buy a stock the same day?” The simple answer to this question is yes. You can sell and buy a stock in the same day. That would be what’s referred to as a day trade. Day trades happen in the exact same day. A lot of people actually think that day trades happen over the course of a couple of days, but that’s not actually the real definition of a day trade as it relates to how brokers are going to see you. When you actually buy and sell stock the same day, you make a day trade. You just have to be aware of the different pattern day trading rules that many brokers have and pattern day trading rules are basically rules setup in place to make sure that people who are day trading, who are making trades in and out of a security the same day have enough capital to withstand the fluctuations in the market and the liquidity to cover positions if they go bad. Again, the