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What is a Day Trading Buying Power Call?

April 26, 2017buying day trading power

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What is a Day Trading Buying Power Call?

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If your account meets the minimum equity requirements for day trading and then exceeds the day trading buying power on executed trades this creates a special maintenance margin deficiency. As a result a day trading buying power call will be issued. Once a day trading buying power call is issued, the day trading buying power is restricted to two times margin maintenance excess for 5 business days unless the call is met earlier. If the Day Trading Buying Power Call is not met within 5 business days, the account will be permitted to execute transactions on a cash available basis for 90 days or until the call is met. Multiple day trading buying power violations may result in a restriction limiting transactions to a cash available basis. Potentially day trading calls can only be met by depositing cash or fully paid securities, or by selling non-marginable securities.