Day Trading through online brokerages on H1-B ?

[bcsekhar]

Hi,
Does anybody tell me if I'm on H1-B and Day Trade through online brokerages, is it Ok ?

Here "Day Trade" means : you are flagged as pattern day-trader by the brokerage company under the SEC.

Thanks,
Chandra

 

[GivMeGreen]

JoeF,
Would it be possible to show some link which disallows day-trading for H1B's. I believe there are two kinds of day trading (well, the sec definition has some big holes in it).

Pattern-day trader is someone who gets tagged by SEC who buys and sells any security the same day (for more than 3 times a week).

Based on IRS : A day trader is one who does more than 1000 trades (buy and sell) a year (that will just about get you into the IRS day trader rule) more generically a "day trader" for IRS is one who usually does it as a full time activity) and spends considerable resources etc to perform the trading. So a person doing 100-200 trades a year is probably not a day trader (even if happens to be a pattern day trader as per SEC) as per IRS. IRS does not give an example of what happens for people between these two figures (200 and 1000).


Do you happen to know what is considered as a Day trader by INS? IRS definition or the SEC definition.

Thanks
GMG

No. Day-trading is not allowed. Only casual trading would be allowed on H1.