Day Trading Margin Calls and End of Day Margin For Prime Clients

A Day Trade constitutes as any trade pair wherein a position in a security (Stocks, Stock and Index Options, Warrants, T-Bills, Bonds, or Single Stock Futures) is purchased and sold (or sold and purchased) within the same trading session.

• If the aggregate margin requirements on Day Trades exceeds the account’s prior end of day maintenance excess, then a Day Trade call will be incurred.
• If the account does not meet the Day Trade call and continues to Day Trade, the Day Trade margin requirement on equity securities will be 2x the standard margin requirement.
• If a Day Trade call is not met by the third day for portfolio margin accounts and by the fifth day for Reg T margin accounts, the account will be limited to closing only for 90 calendar days or until such time as the special maintenance margin call has been met.

Prime capabilities will also be removed for 90 calendar days.

To avoid this, clients will need to deposit funds to satisfy the call.

Please also note that, FINRA rules place restrictions on your ability to meet end of day margin deficiencies by liquidating positions. Accordingly, we track and record each instance in which positions are liquidated in order to meet an end of day margin deficiency.

A client that engages in three such liquidations within a rolling twelve-month period may have its Prime privileges removed for at least 90 days. Please note that an end of day margin deficiency will not be considered met by liquidation if sufficient funds are deposited within three business days of the deficiency.