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