What happens if I am a Pattern Day Trader and I exceed my Day Trading Buying Power and my account is above $25,000?
If the day trading buying power is exceeded in a pattern day trader account above $25,000, the account will be subject to a day trading call. Example: A pattern day trader with $50,000 in equity, not currently in a call, purchases $250,000 worth of stock. A trading call will be generated in the amount of $12,500. Since not currently in a call, the account would be able to purchase $200,000 worth of stock ($50,000 times 4). However, the account purchased an additional $50,000 generating a call of $12,500 ($50,000 divided by 4).
