They can’t be on a margin account of 10% or more, nor can they be a manager, who typically makes their money from stock options
The minimum daily holding requirement varies depending on the type of trader, but is 5,000 shares with the caveat that the daily maximum is based on the price of the stocks’ open.
There are some exceptions, however.
One exception is a person who works closely with clients, like research analysts and stockbrokers.
For this, the person must hold an amount of less than 10% equity.
For example, one type of person who might be considered a swing trader is a cash manager with a margin account of 10% or less.
Who are swing traders?
According the research report on swing trading available from the NASDAQ and the NYSE, the definition of a swing trader is defined by who is not an investor – traders can include many activities such as “speculative trader,” “speculative trader with no equity,” etc. – but who also is not a fiduciary, like an advisor, as in, someone who holds securities for a fee.
This also means that the person who is only trading on the order books is not considered a swing trader.
Who can be a swing trader?
There is a wide range of people who are allowed to trade in stock options, depending on whether they have a margin account that allows them to exceed a 10% daily minimum.
Stock options are not considered trading stocks. Rather they are equity transactions from a broker, such as the New York Stock Exchange, which use the technology for securities exchange, and allow you to buy, sell, convert, or trade a specific index or a variety of securities.
It goes even further than that. There is a limit. If both sides, and the buyer and seller, cannot agree, then it’s considered trading stocks.
Some people are very good at both activities, but if this is not their strength, then the minimum daily trading requirement could be higher.
In any case, it is a trade that is allowed under normal circumstances, but is not allowed by any bank.
It doesn’t matter if you hold stock, or are able or willing to, as long as you do not trade.
What’s more, you have to keep trading until the position you are making – the number of shares – is either doubled or less than doubled.