Using Same Day Deposits
Funds available for day trading must be in the margin account one business day prior to calculating the day trading buying power. “Day trading buying power” means the equity in the account at the close of business of the previous business day, less any maintenance requirements, multiplied by four for equity securities.
Therefore, any funds brought into the account the same day, a wire deposit for instance, cannot be used for day trading.
New customer has no positions and no buying power to start the day. He wires in $50,000 at noon. The wire is posted to his account, and his Option BP is now $50,000.
Trade 1 (1:00 PM)- BTO 100 XYZ March 400 calls $3.00 ($30,000)
Trade 2 (1:10 PM)- BTO 50 QQQ April 50 calls $2.50 ($12,500)
Trade 3 (2:45 PM)- STC 100 XYZ March 400 calls $3.25
The customer has day traded the XYZ options. The day trade charge is $30,000. This figure exceeds his starting day trading buying power ($0) and a DT call will be issued to the customer in the amount of $30,000.