How does the profitable trade range work in Stock accounts? (10 cents rule)
For stock accounts, a trade is only counted as profitable if it shows at least $0.10 gain per share.
Each position must yield a minimum of 10 price ticks of profit, meaning there must be at least a $0.10 difference between the average entry price and the average exit price.
Example:
If you buy a stock at $50.10, you must sell it at $50.20 or higher for the trade to be considered profitable.
This rule ensures that trades meet a minimum profit threshold and avoids counting very small price movements that do not represent meaningful gains.