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.
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.
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.
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.
if your stock is going your way, and yet you still get a margin call, you must have been deep in shite.
I think the guy is using daytrading buying power but carrying the position overnight. Even though the position is increasing his equity, he is is not at 50% to satisfy overnight Reg T . I think that is correct. Any margin clerks out there? (Of course the correct thing to do would be for this trader to call his margin clerk and ask these questions. It's not like they don't know what he is doing.)