How do the new margin rule amendments change Day Trading Buying Power (DTBP)?
DTBP for accounts deemed as Pattern Day Traders, is limited to four times the day traders Maintenance Excess. This calculation is based on the customers account positions as of the close of business the previous day. Maintenance Excess is calculated by subtracting your Margin Maintenance Requirement from your Margin Equity. The maintenance excess (DT Excess Equity) figure can be found every morning on the bottom section of your comprehensive report found in the client center on our website www.terranovaonline.com. You can also see an example by clicking on the following link: http://www.terranovaonline.com/TNO2001/tno_ClientS/CompReport.
DTBP for accounts deemed as Pattern Day Traders, is limited to four times the day traders Maintenance Excess. This calculation is based on the customers account positions as of the close of business the previous day. Maintenance Excess is calculated by subtracting your Margin Maintenance Requirement from your Margin Equity. The maintenance excess (DT Excess Equity) figure can be found every morning on the bottom section of your comprehensive report found in the client center on our website www.terranovaonline.com.
