Question

  • What is a day trading margin call?

Answer

pointer This call occurs when an account exceeds its available day trading buying power. If you receive a day trading margin call, your account will be on aggregation status. Aggregation status means the total cost of all day trades in one day cannot exceed your start- of- day buying power.

Example:

Start of day buying power $10,000

Purchase ABC ($5,000)

Sell ABC $5,000

Purchase XYZ ($5,000)

Sell XYZ $5,000

The total cost of the day trades is $10,000, so you cannot day trade until the next business day. If you were to place another day trade, a day- trading margin call would be generated.

More information on day-trading requirements can be foundĀ here.

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