Answers.com > Wiki Answers > Categories > Business & Finance > Investing and Financial Markets > Stock Market > Stock Options and Futures > What are the prerequisites of becoming a day trader?

What are the prerequisites of becoming a day trader?

In: Stock Options and Futures, Stocks, Dow Jones Industrial Average [Edit categories]

Answer:

As far as I know the only requirement is to have no less than $25,000 in your account. Call up your broker to be certain of all the requirements. I've heard of accounts being frozen for a short period of time because of accidental day trading. Most of the time, the larger brokers have great/friendly customer service.

Good luck with it!

First answer by Begreen87. Last edit by Begreen87. Contributor trust: 0 [recommend contributor ]. Question popularity: 1 [recommend question].

[report abuse]

Can you answer these Stock Options and Futures questions?

	How do you buy options?	Answer it!
	What does it mean when premiums are increasing in call options?	Answer it!
	When do you sell a call option?	Answer it!
	Why do commodity brokers use contracts for forward and future contracts?	Answer it!
	What is a contra call option?	Answer it!

Relevant answers:

What is a day trader?
"Day trader" has taken on a negative connotation. Many people think of the amateur individual investors who started investing their own money via online trading sites such as eTrade during the...
How are day traders taxed?
Day traders who didn't lose money on their trades are taxed at normal income tax rates, or the same rate that a short-term capital gain would be taxed. One thing to note is that day traders are...
How are professional day traders taxed?
Short term gains are taxed as income, while long term gains are taxed as capital gains. Also you can right down losses and commissions that come with trading. I'm not certain on when a position is...
Annual salary of a day trader?
Could be millions. Can go bust. Depends.
What is the difference between a day trader and a prop trader?
A day trader is a trader who buys and sells financial instruments (eg stocks, options, futures, derivatives, currencies) within the same trading day such that all positions will usually be closed...