How do separate orders impact Day Trades?

In an IBKR Cash account, an investor must pay for the purchase of a security meaning, the trade must settle prior to selling that security.

A Broker can have rules that are more restrictive than required by regulators. IBKR's implementation of the free riding rule uses an end of day check to see if a position was closed prior to its trade settlement date. This IBKR end of day surveillance would still consider closing a position before settlement a Free Riding violation and would automatically put the account into "Cash Up Front" restriction for the next 90 days…

In a cash account, an investor must pay for the purchase of a security (meaning, the trade must settle) prior to selling that security. If an investor buys a security and then sells that same security without paying for the security in full by settlement date, the investor is considered to be “free riding.” Our implementation of the free riding rule uses an end of day check to see if a position was closed prior to its trade settlement date. Our end of day surveillance would still consider closing a position before settlement a Free Riding violation and automatically puts the account into "Cash Up Front" restriction for the next 90 days…

A Day Trade constitutes as any trade pair wherein a position in a security (Stocks, Stock and Index Options, Warrants, T-Bills, Bonds, or Single Stock Futures) is purchased and sold (or sold and purchased) within the same trading session.

• If the aggregate margin requirements on Day Trades exceeds the account’s prior end of day maintenance excess, then a Day Trade call will be incurred…

The day trades left line item will still appear in a Cash account. However, there are no number values displayed next to that line item in a cash account type.

Note…