FDIC (PDT Accounts)
This way of generating DT calls affects Pattern Day Trader (PDT) accounts only. Funds must reside in the margin account one day prior to being available for day trading activities. If you are a Pattern Day Trader, FDIC funds may not be used to satisfy any day trading buying power requirements. (See: “Calculating Day Trading Buying Power”)
A PDT customer begins the day with $50,000 of Option BP. All of the funds are in the FDIC fund, and the starting day trading buying power is $0.
Trade 1 (10:00 AM)- BTO 1000 ZZZ $75. (Reg-T requirement is 50%, or $37,500)
Trade 2 (11:15 AM)- STC 1000 ZZZ $75
The customer has day traded ZZZ stock. The day trade charge is $37,500. This figure exceeds his starting day trading buying power ($0) and a DT call will be issued for this amount.
In most cases funds can be moved from the FDIC fund to margin to satisfy the DT call, but the account will be in aggregation status for at least one day.