What is an EM call?

Per regulation, when more than 3 day trades are executed in a margin account during a rolling 5 business days, the account is flagged as Pattern Day Trader (PDT). FINRA requires that the equity value in a PDT-flagged account must be no lower than $25,000 at the end of each trading day. When the equity value in the PDT-flagged account dips below $25,000, an Equity Maintenance (EM) call occurs on the next business day.

What is a day trade?

Buying and selling the same security on the same day is considered a day trade. How is the number of day trades calculated in different scenarios? See below for a brief summary.

What happens if you get an EM call?

When an EM call is issued in the account, you shall not make any day trades (the day trader buying power or "DTBP" in the account will be $0). If a day trade is made while an EM call is active, a Day Trade (DT) call occurs on the following trading day.

With both an EM call and a DT call active in your account, you’ll only be able to close positions. Opening new positions won’t be allowed.

How do you remove an EM call?

An EM call is removed when the account is not flagged as PDT or the equity value in the account reaches $25,000.

1. Once active, the PDT flag will stay on your account until you reset the PDT flag manually. Click the "Reset PDT" button to submit your request. Your reset request usually takes 1-2 days to process. By the third business day, once the PDT flag is removed and the EM call is lifted, you will be able to day trade again. Please pay special attention to the PDT flag as it can only be reset once in the lifetime of the account.

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2. There are multiple ways to bring your account value above $25,000.

• Make a deposit
• Transfer securities into your account
• Wait for the securities in your account to appreciate

If the equity value in the account is above $25,000 before 4 pm EST, the call will be removed on the following trading day.

How do you avoid an EM call?

To avoid EM calls, it’s important to keep track of your day trades. If you have 0 day trades left for the day, turn off all stop-loss and take-profit orders so that none will be automatically placed.