Margin Trading
Understanding Margin Calls
A margin call occurs when an account no longer meets required equity or margin requirements due to trading activity, market movement, or insufficient buying power. Depending on the type of call, accounts may become subject to deposit requirements, trading restrictions, or liquidation if the call is not satisfied within the required timeframe.
Cash Call
Triggered when an opening transaction exceeds the account’s available cash balance.
Due Date: T+3
How to Satisfy the Call
- Deposit cash equal to the full call amount
- Deposit eligible securities equal to the full call amount
Additional Information
If another violation occurs within a 90-day restriction period, the account may be limited to closing transactions only.
Day Trade Call
Triggered when Day Trading Buying Power is exceeded on an intraday transaction.
Due Date: T+5
How to Satisfy the Call
- Deposit cash equal to the full call amount
- Deposit margin-eligible securities valued at 133% of the call amount
Additional Information
- Buying power will not be restored until the call is satisfied
- Deposited funds must remain in the account for two business days before withdrawal
- This type of call cannot be met through liquidation
Equity Maintenance Call (PDT)
Triggered when a Pattern Day Trader account falls below the $25,000 minimum equity requirement.
How to Satisfy the Call
- Deposit cash equal to the call amount
- Deposit eligible securities equal to the call amount
- Market appreciation
Additional Information
Accounts restricted under PDT rules are limited to closing transactions until equity requirements are restored.
For participating accounts under the new intraday trading framework, this call type is expected to phase out by the end of the 18-month implementation period of the revised rules under FINRA 4210.
Maintenance Call
Triggered when account equity falls below minimum maintenance requirements for open positions.
Due Date: T+3
How to Satisfy the Call
- Deposit cash equal to the call amount
- Liquidate margin-eligible securities valued at 4x the call amount
- Liquidate non-margin eligible securities equal to the call amount
- Market appreciation
Additional Information
- Calls on accounts with less than 20% margin equity may be due within 1 business day.
- Maintenance calls are generally subject to liquidation on T+4
- Brokers may liquidate positions at any time without notice to protect financial interests
If the call is not satisfied, positions may be liquidated.
Portfolio Margin Maintenance Call
Triggered when account equity falls below house maintenance requirements for open positions in a Portfolio Margin account.
Due Date: T+2
How to Satisfy the Call
- Deposit cash equal to the full call amount
- Liquidation
- Market appreciation
Additional Information
Liquidations used to satisfy these calls are generally limited to two instances per year unless caused by adverse market movement. Additional instances may result in account restrictions.
Portfolio Margin Minimum Equity Call
Triggered when a Portfolio Margin account falls below the $150,000 minimum equity requirement.
Due Date: T+1
How to Satisfy the Call
- Deposit cash equal to the call amount
- Deposit eligible securities equal to the call amount
- Market appreciation
Additional Information
Portfolio Margin accounts must maintain minimum equity requirements to retain Portfolio Margin status.
Portfolio Margin Leverage Call
Triggered when total market exposure exceeds the account’s approved leverage multiple.
Due Date: T+2
How to Satisfy the Call
- Deposit funds
- Reduce positions through liquidation
- Market appreciation
Additional Information
Repeated liquidations used to satisfy leverage calls may result in loss of Portfolio Margin privileges.
Portfolio Margin Regulatory Maintenance Call
Triggered when account equity falls below regulatory maintenance requirements for Portfolio Margin positions.
Due Date: T+1
How to Satisfy the Call
- Deposit cash equal to the call amount
- Liquidation
- Market appreciation
Additional Information
Required deposits or liquidation values may increase if the account subsequently declines in value.
Reg-T Federal (Initial) Call
Triggered when overnight buying power is insufficient to support overnight positions under Federal Reserve Regulation T requirements.
Due Date: T+3
How to Satisfy the Call
- Deposit cash equal to the call amount
- Deposit margin-eligible securities valued at 133% of the call amount
- Liquidate margin-eligible securities valued at 2x the call amount
Additional Information
Repeated use of liquidation to satisfy Reg-T calls may result in a 90-day restriction limiting the account to available cash only.
If the call is not met, positions may be liquidated.
Important Risk Disclosure
Margin trading involves substantial risk and is not suitable for all investors. Trading on margin may result in losses exceeding your initial investment. Brokerage firms may liquidate positions without prior notice if margin requirements are not met.
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