DT Call
What is a DT call?
A Day Trading Call occurs when opening trades exceed the Day Trade Buying Power (DTBP) issued on a given day.
You are most likely to incur a DT call in the following two scenarios:
1. Day trading with an EM call in your account
If you are in an EM Call, your DTBP is zero. If you day trade while you have an EM Call, you will get a DT Call.
2. Day trading at an amount exceeding your DTBP
Assume that you have $10,000 of DTBP. The XYZ stock you bought two days ago surged, so you sell it for $6,000 after market open. Later, the stock surges again. This time you buy $16,000 worth of XYZ stock and close this long position later the same day. In this case, you’ve incurred a DT call.
Keep in mind that your DTBP cannot be increased with intra-day profits.
What is Day Trade Buying Power?
DTBP refers to the funds you have available in your account to place trades on a given trading day. Your DTBP is determined at the beginning of the day (four times the margin excess) and will not increase based on sales of marginable stocks that were held overnight. You will need to wait until the following day to see the DTBP reflected in your account. A purchase during the current day will decrease your DTBP and a subsequent sale of that stock (a day trade) would increase it again.
What happens if you get a DT call?
- If you have an open DT call, your DTBP will be 0.
- If you have one DT call past due, your account will be restricted to liquidation-only status for 90 days.
- If you have two DT calls past due, your account will be closed for 90 days.
How do you meet a DT call?
There are only two ways to meet a DT call. Liquidating stocks cannot meet a DT call.
- Depositing funds in the full amount of the call.
- Transfer shares of marginable stocks worth the call amount into the account.
The call will be removed one business day after the required action. The funds must stay in the account for at least 2 business days before your account is returned to good standing.
How do you avoid DT call?
Do not day trade when you have an EM call. It’s important to keep track of your DTBP. If you try to day trade at an amount exceeding your DTBP, a DT call warning may pop up before you confirm your order. To avoid a DT call, do not hit the Confirm button.
