FORUMS BROKERS SOFTWARE
Home
 
    Forums > Main > Trading > On Day Buying Power Margin Call, how many days do I have?


Reply
 
Thread Tools
Old Nov 3rd, 2006, 07:03 AM   #1
qll
 
 
Join Date: Jun 2006
Location: Capital Gain Tax: 0%
Posts: 662
I used half million Day Buying Power to buy stocks, then network was down. I am now on Reg. T magin call, however the stock I bought gave me a lot of profit, and keeps going my way. I want to keep those stocks as long as possbile (1-3 days). How many days can I keep them before a forced liquidation?

Currently, I am both on Reg. T call and Maint. call.
    Quote
Old Nov 3rd, 2006, 07:08 AM   #2
qll
 
 
Join Date: Jun 2006
Location: Capital Gain Tax: 0%
Posts: 662
REGULATION T CALLS can be covered by depositing cash or marginable stock, closing long or short equity positions, or transferring in funds or marginable stock from another TD AMERITRADE account. If closing a position, you must liquidate twice the amount of the Reg T call in marginable securities. The security which created the Reg T call cannot be liquidated to meet the call. Reg T calls must be met within five (5) business days, without exception. We must receive and credit funds sent by overnight check or wire by the close of business on day 5 for your Reg T call to be met. Otherwise, a forcible sellout may occur.

MAINTENANCE CALLS can be covered by depositing cash or marginable stock, closing long or short equity positions, or transferring in funds or marginable stock from another TD AMERITRADE account. If you are liquidating securities, only the maintenance requirement amount for that security is applied toward your deficiency. For example, if the call is $3,000 and you are closing a position that has a 30% requirement, $10,000 must be liquidated. If you close a security with a 50% maintenance requirement, only $6,000 would be required. In order for you to meet your margin call through market fluctuation, your account must close the traditional trading day above minimum margin maintenance requirements. Intra-day market fluctuation will not suffice for meeting your margin call. Market conditions may dictate a forcible sell-out.

*******
NOTE: I thought Reg T is more strict, so if I got 5 business days for Reg T, does this mean I have more days for MAINTENANCE CALLS?
*******

If I regularly go into Reg. T. then sell stocks within 4 business days, will this hurt my credit history, or the broker will stop serving me?
I think it is a nice trick to get more overnight buying powers, although just 5 days only.
    Quote
Old Nov 3rd, 2006, 07:31 AM   #3
countryBoy
 
 
Join Date: Jan 2004
Posts: 150
I think some forced liquidations will get you a "restricted" status. I don't remember the particulars of that, but it's not good.

The Reg T rules are not from the broker, but are from the Federal Reserve Bank. Probably not a good idea to intentially abuse it.

Hopefully, some margin clerk will see this and give you all the info.
    Quote
Old Nov 3rd, 2006, 07:41 AM   #4
GTS
 
 
Join Date: Jun 2006
Posts: 2,190
Quote:
Quote from qll:

NOTE: I thought Reg T is more strict, so if I got 5 business days for Reg T, does this mean I have more days for MAINTENANCE CALLS?
No

Quote:
If I regularly go into Reg. T. then sell stocks within 4 business days, will this hurt my credit history
No, this has nothing to do with your credit history.

Quote:
or the broker will stop serving me?
Yes
    Quote
Old Nov 3rd, 2006, 08:20 AM   #5
Wetton
 
 
Join Date: Jul 2006
Posts: 100
Quote:
Quote from qll:

I used half million Day Buying Power to buy stocks, then network was down. I am now on Reg. T magin call, however the stock I bought gave me a lot of profit, and keeps going my way. I want to keep those stocks as long as possbile (1-3 days). How many days can I keep them before a forced liquidation?

Currently, I am both on Reg. T call and Maint. call.
Aren't you the guy who provides "research" to hedge funds and institutional investors? The guy who digs deep and finds out things that no one else knows?

Yet here you are and you don't even know how a margin account works!!!???

Me thinks somebody is full of shit.
    Quote
Old Nov 3rd, 2006, 08:58 AM   #6
Tums
 
 
Join Date: May 2006
Posts: 4,036
if your stock is going your way, and yet you still get a margin call, you must have been deep in shite.
    Quote
 
Reply
Thread Tools

Forum Jump



   Conduct Rules   Privacy Policy   Sitemap Copyright © 2014, Elite Trader. All rights reserved.   

WHILE YOU'RE HERE, TAKE A MINUTE TO VISIT SOME OF OUR SPONSORS:
Advantage Futures
Futures Trading & Clearing
Alpha 7 Trading Academy
Proprietary Trading Education
AMP Global Clearing
Futures and FX Trading
Bright Trading
Professional Equities Trading
CTS
Futures Trading Software
DaytradingBias.com
Professional Trading Analytics
ECHOtrade
Professional Trading Firm
eSignal
Trading Software Provider
FXCM
Forex Trading Services
Global Futures
Futures, Options & FX Trading
Interactive Brokers
Pro Gateway to World Markets
JC Trading Group
Direct Access Trading
MB Trading
Direct Access Trading
MultiCharts
Trading Software Provider
NinjaTrader
Trading Software Provider
OANDA
Currency Trading
optionshouse
Option Trading & Education
Rithmic
Futures Trade Execution Platform
SpeedTrader
Direct Access Trading
SpreadProfessor
Spread Trading Instruction
thinkorswim by TD Ameritrade
Direct Access TradingAdvertisement
TradersStudio
System Building & Backtesting
Trading Technologies
Trading Software Provider
Trend Following
Trading Systems Provider