Day Trade Calls
Day trade calls can be tricky and inconvenient, so it’s good to know how to prevent them, and what to do if you find yourself in one.
You’ll get a day trade call if you exceed your day trade limit. Your specific day trade limit is based on a specific start of day value, which you can find listed as “Today’s Day Trade Limit” in the Margin Investing section of the account tab. Note that your day trade limit will remain constant throughout the day.
Your day trade limit is set at the start of each trading day. It’s based on the amount of cash that you have in your account, as well as the maintenance requirements on the stocks that you hold overnight. In general, your day trade limit will be higher if you have more cash than stocks, or if you hold mostly stocks with low maintenance requirements.
You can find your day trade limit in your app:
You can increase your day trade limit by depositing funds, but not by selling stock.
First, remember that you can’t receive a day trade call unless you’ve been flagged as a pattern day trader in the past 90 days.
If you have been flagged as a pattern day trader and exceed your day trade limit, you’ll be issued a day trade call. You’ll have 5 trading days to resolve the call and will be restricted from day trading during that time.
If you don’t resolve your day trade call by the due date, you’ll remain restricted from day trading for 90 days unless you resolve the call. If you day trade while in a day trade call, you’ll be prevented from purchasing anything for 90 calendar days.
You can resolve your day trade call by depositing the amount displayed in the day trade call email, in the in-app card, and in your account menu. You’ll be able to withdraw the money that you deposit after the standard 5-day settlement period, but if you withdraw cash while in an active day trade call it will increase the call amount.
Remember: you’ll have 5 trading days from the day the call was issued to deposit the necessary amount. Otherwise, you’ll continue to be restricted from day trading for 90 calendar days. If a day trade call is past due, you’re still able to deposit funds to resolve the call at any point, but the 90-day restriction on day trading still applies.
Once you’ve resolved your day trade call, you can resume day trading on the very next trading day.