Day Trade Call (DT)
Cause: An account’s day trading buying power is exceeded by that days day trade requirements.
Due: Trade Date + 5 business days (T+5).
Meeting a DT Call: DT calls can only be met by a deposit of funds into the account in the amount of the call or greater. Funds must remain in the account for two full business days after the day of deposit before being withdrawn.
Any funds withdrawn from the account while the account has an open DT call will be added to the amount of the call.
From the time a DT call is issued until the time that it is met, a Pattern Day Trader (PDT) account will be in aggregation status. Aggregation status means the total cost of ALL day trades in one day are added together to determine that day’s day trade requirement, and cannot exceed your starting day trade buying power.
Further, when a DT call is issued, the Pattern Day Trader will lose the right to use 4X stock buying power to day trade with; the account will have its day trade buying power reduced to 2X.
Once the call goes past due the account will be further restricted to day trade with only cash on hand.
The Aggregation restriction will be removed from the account the business day following the day the call is met.
DT calls do not have to be met; however a PDT account will remain in aggregation for 90 days past the due date of the call. At the end of the 90 day period the DT call will fall off and the account will be free of restriction.
Accounts that generate a second DT call
Any account, whether a PDT or non-PDT account, that has a DT call open and is issued a second DT call, will be restricted to liquidation only (LO) for 90 days past the due date of the second call. There are two scenarios which determine the due date of the second call and the methods for meeting the calls.
One is when there is a prior, open, unmet, but not yet past due DT call on the account at the time of the second DT call. The other is when there is a prior, unmet and past due DT call on the account at the time of the second DT call.
First call not past due:
The second call will be issued T+5
First call is past due:
The call will be issued T+1
Meeting multiple day trading calls:
Two calls, neither call is past due: Funds brought in when neither call is past due may be applied to both calls. Therefore, funds sufficient to meet the larger of the two calls will meet both calls, and the Pattern Day Trader (PDT) account will be off aggregation the following business day. The account can be unrestricted from closing-only transactions the same day (when the wire posts at the clearing firm), but the PDT account will still be in aggregation that day.
Two calls, the first call has aged past 5 days, and is past due, and the second call is not past due: The past due call must be met separately. This means for a PDT account to come fully off restriction the total of both calls must be met.
Two calls, both are past due: The total of both calls must be met in order for the account to be enabled to make opening trades.
Note: It is possible to meet the smaller of the two calls as long as both calls are not past due. PDT accounts that meet only the smaller of the two calls will remain in aggregation with a reduction in day trade buying power.