About Regulation T calls

Regulation T (Reg T) is a Federal Reserve Board provision that regulates extensions of credit and requires that investors have a minimum initial ownership interest of 50%.

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What is a Reg T call?

If you don’t have enough equity in your brokerage account to cover the minimum 50% requirement, you’ll be issued a Reg T call.

Note

Reg T calls are due within 4 trading days, but Robinhood reserves the right to cover the call early if necessary. We recommend that you resolve a Reg T call immediately.

If you get a Reg T call, it’s because you haven’t met the initial requirement for the stocks you’ve bought. Initial requirements can vary depending on the specific stocks, but the minimum will always be 50%.

Be sure to check the stock’s Detail page for its initial requirement. Keep in mind, if you have Margin investing enabled, you’re responsible for paying the initial requirement any time you place an opening trade.

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Why did you get a Reg T call?

The following are the most common reasons why you might get a Reg T call.

  • Options assignment: If you have options assignments and don't have sufficient funds in your brokerage account to cover the 50% minimum initial requirement for stock purchased, you may get a Reg T call.

  • ACH reversals: If a deposit you made has been reversed, you may get a Reg T call for insufficient funds. You may need to reinitiate your deposit to immediately cover any trades made.

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How to resolve a call

You can resolve a Reg T call by following the on-screen instructions in the app. Some common ways to resolve a call are:

  • Exercise a long option.

  • Deposit funds equal to or in excess of your call amount.

  • Close some of your positions by selling shares. The proceeds from the sales will help cover your call.

Keep in mind that liquidating to meet Reg T calls for your account can lead to further restrictions.

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Disclosures

Margin involves the risk of greater investment losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. Review our Margin Disclosure Statement for details.

Reference No. 2779035
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Brokerage services are offered through Robinhood Financial LLC, (RHF) a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (RHS) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (RHC) (NMLS ID: 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. The Robinhood spending account is offered through Robinhood Money, LLC (RHY) (NMLS ID: 1990968), a licensed money transmitter. A list of our licenses has more information. The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard®. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC is not a member of FINRA and accounts are not FDIC insured or protected by SIPC. RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Check out Robinhood Financial’s Fee Schedule for details.

© 2023 Robinhood. All rights reserved.