Trading Questions

How am I affected by the new Day Trading Rules?

The new day-trading margin rules took effect on September 28, 2001.

A pattern day trader is defined as a client who day trades 4 or more times in 5 business days within a single margin account. If the day trading activity in a single margin account does not exceed 6% of the client's total trading activity for the 5-day period, then the client would not be considered a "Pattern Day Trader". If a client qualifies as a Pattern Day Trader in a single margin account, that account will be designated as a Day Trade Margin Account.

All accounts, classified as day trade margin accounts, must have a minimum equity of $25,000 each day to execute day trades. If you are classified as a pattern day trader and your account drops below $25,000 you will be restricted to trading on a cash available basis only.

Can I trade outside of market hours?

Yes. Global-American Investments offers a 13-hour trading day for clients with day trading accounts (7:00 a.m. - 8:00 p.m. PST). Please refer to the after hours trading risk disclosure for risks associated with after hours trading.

After-hours market trading is available through several ECNs utilizing one of our day trading platforms. At this time there are no phone in orders available after regular trading hours.

What securities can Global-American Investments' customers trade?

We currently execute customer transactions for National Market System securities, NYSE securities, and AMEX securities.

Can I get Level II quotes in real-time?

Both of our SE Global Trade and Real Tick trading platforms include Level II real-time streaming quotes.

Does your firm make markets or act as principal?

Global-American Investments does not make markets nor act as a principal in transactions.

How do you handle listed orders?

Orders for securities listed on the NYSE and AMEX exchanges are routed directly to the specialist on the exchange floor via the Super Dot system for execution. They are executed on what is called an "auction" market. Through our trading platform you can also route trades to a third party market maker (HRGZ), to execute listed orders.

How fast will my trades be executed?

This is one of the most commonly asked questions but is one of the most difficult to answer. When you place a trade it is sent directly to the market. Therefore, how quickly your orders are executed depend on market conditions, the type of order system you use, and the volatility of the stock you are trading and your internet connection. Under the best conditions, for your order can be filled in seconds.

Are orders over the Super Dot executed faster than OTC orders?

Listed orders are executed in the auction market via "open outcry" with specialists calling out matching bids and offers to the "floor" for price improvement before pairing them off. Therefore, listed executions generally take longer to execute than most OTC orders. However this is not always the case but it is a good general guideline to remember. Having your order executed in this manner does not mean that fills are less than desirable. This simply means that your trade execution is often slower than OTC executions.

How will I be notified when a trade has been executed?

You will be able to see your executed orders on-line through your trading system, and have the ability to access an account order history screen that keeps a record of all executed orders and cancellations. You will also be mailed a hard copy confirmation for each transaction, and your account information will be updated immediately. You will also receive a monthly account statement detailing all of your account activity and positions when there is activity in your account.

What about multiple fills on my order?

When you have multiple fills on one order it will only be billed as one ticket. This multiple fill order will qualify as one trade for discount purposes.

Please note that partial fills with price improvement will be count towards extra tickets.

Do you recalculate my account balance upon orders being executed?

Yes. Penson Financial Services Inc. will also remove buying power for opening positions and release margin for closing positions.

What happens if I am away from my computer or my computer system or Internet stops working? How can I place an order?

If you are away from your computer or you are not able to trade through your computer you may call us to place a trade at our trading desk.

Can I trade NYSE/AMEX stocks on your trading platforms?

Yes. Just enter the proper symbol for the stock you want to trade and send the order. When you open an account at Global-American Investments for SE Global Trade or Real Tick III you will receive a package, which will give you an option to purchase real time quotes for NYSE/AMEX stocks.