Money Due Call (MD)


Cause: MD calls are issued when a cash account makes a transaction and exceeds the overnight buying power, or when a margin account makes a transaction and exceeds the overnight buying power, and a required maintenance call (RM) or concentrated maintenance call (CM) is also issued.

Due: Generally, Trade date + 5 business days (T + 5) to meet by depositing funds in the amount of the call. OptionsHouse may issue MD calls T+1 at its discretion, based on risk and/or other factors.

Meeting the Call: MD calls can only be met by a deposit of funds into the account in the amount of the call or greater.

If the MD call is not met by the due date a liquidation strike is issued.

After a fourth strike in a rolling year period, subsequent MD calls are issued as MD Restricted (MDR) calls, and are due T+1.

Five strikes in a rolling one year period will restrict the account to closing trades only status for 90 days from the due date of the 5th violation.

In addition, if the MD call is not met by the due date, and the position that caused the MD call is closed, a Free Ride Violation strike is issued.

Subsequent MD calls are due T + 1. Two Free Ride strikes in a rolling one year period will restrict the account to closing trades only status for 90 days from the due date of the 2nd violation.