What is a day trade minimum equity call?

A Day Trade Minimum Equity Call is typically issued when the equity in a margin account falls below the $25,000 requirement. This can occur due to market volatility, losses, or margin calls. The equity call requires the trader to deposit additional funds or securities to meet the minimum equity requirement.

What is an equity call & how does it work?

The equity call requires the trader to deposit additional funds or securities to meet the minimum equity requirement. It’s a crucial aspect of trading that demands prompt attention, as failure to meet the call can lead to trading restrictions. Brokerage firms may have specific policies regarding day trading and equity requirements.

What happens if I fail a day trade minimum equity call?

If you fail to meet a day trade minimum equity call, you may face immediate restrictions on your trading activities. These can include the suspension of day trading privileges or the limitation to trading with settled funds only. Such restrictions can significantly impact your trading strategy and profitability.