Hello, I'd like some help in understanding the Wash Sale rule.
I understand why the Wash Sale rule exists, and how it prevents people from generating artificial realized losses at tax time. This makes total sense at the end of the tax year. I can't just sell a stock for a loss on December 24, claim the loss, and then buy it back on Jan 1.
But, what if I'm doing day trading and frequently buying and selling the same stock during the middle of the year. Am I not allowed to add the PnL of those trades together if they're less than 30 days apart? If so, how do day traders and HFT avoid accidentally hitting the wash sale rule all the time?
Thanks.
Submitted October 03, 2021 at 12:16PM by Lopatron https://ift.tt/3A0tEu4
