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What is a Day Trading Call and how do I calculate my Day Trading Buying Power ?

April 26, 2017buying CALCULATE day trading power

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What is a Day Trading Call and how do I calculate my Day Trading Buying Power ?

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A Day Trading Call is issued when you have exceeded your Day Trading Buying Power at any one given point throughout the day. A Day Trading Call can only be issued when you have bought and sold the same security on the same day. Day Trading Buying Power is calculated at the beginning of every trading day based on the previous day’s closing, therefore Day Trading Buying Power can not be increased by liquidating securities. The formula for calculating your Day Trading Buying Power is : (Current Equity – 25% of long positions – 30% of short positions) x 2 = Day Trading Buying Power This is your Day Trading Buying Power. Day Trading Calls can only be met by depositing funds, they can not be met by liquidation. We will attempt to notify you of any Day Trading Call that exists in your account. Due to the complex nature of Day Trading Calls, NAIB encourages you to address any questions you may have with a representative from our trading desk.