DEFINITIONS STOCKS
DEFINITIONS STOCKS
What is the precise definition of a round trip stock trade?
I am specifically referring to round trip trades which are part of the definition of a pattern day trader. If a person buys 2000 shares of stock B on a particular day and sells only 5 shares of stock B that same day is it considered a round trip? Could you cite a reference for where you found the definition.
An action that attempts to inflate transaction volumes through the continuous and frequent purchase and sale of a particular security, commodity or asset. Round-trip trading can be used to refer to the practice of a business selling an unused asset to another company while agreeing to buy back the same asset for about the same price (which has been seen in the energy and telecom business).
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