FAQs  >  Topic: Trading

What causes day trade margin calls and how can I avoid them?

A day trade margin call is triggered when you exceed your day trading buying power. You can avoid this by following three simple rules:

  1. Know your day trading buying power before you place any trades. You can check it by logging in to your account and navigating to Manage Accounts.
  2. Make sure the total amount of all your day trades on any given day do not exceed your day trade buying power.
  3. Know your trading requirements – some securities have elevated trading requirements.

To learn what causes day trade margin calls and how you can avoid them, please watch this video.

Important Note: All of the calculations, explanations, and examples in this presentation apply to an account that has not already received a prior day trade margin call. When an PDT account has an open, unmet, day trade margin call, some rules & calculations used in calculating day trading buying power & subsequent day trade calls change and can become more stringent.