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Stock & ETF Account and Margin Requirements

Pattern Day Trading Accounts

$30,000

 

Pattern Day Trading Accounts: Based on FINRA day trading rules, any account that places 4 day-trades in a 5 trading day period is permanently deemed to be a "Pattern Day Trading" account. Pattern Day Trading Accounts must maintain a minimum daily equity balance of US $25,000. If the account balance falls below $25,000, trading is restricted to closing transactions only until the account balance is increased to $25,000.

Non Day-Trading Accounts

$5,000

 

Non-Day Trading Accounts: Non-Day Trading Accounts (an account that has never placed 4 day-trades in a 5 trading day period) must maintain a minimum daily equity balance of at least $5,000. Non-Day Trading Accounts are restricted to 3 opening transactions per day, less the number of day trades made in the preceding 4 trading days. For example, if you have made 2 day-trades in the preceding 4 trading days, you will be permitted to place 1 new opening transaction (Buy or Sell Short) on the current day. You will still be able to place as many closing transactions (Sell, Cover) as you would like on the current day. Based on FINRA day trading rules, an account which places 4 day-trades in any 5-day period will be deemed to be a "Pattern Day Trading" account permanently. See "Pattern Day Trading Account" requirements above.

Margin requirements are structured for a diversified portfolio. Accounts that are using margin for holding concentrated positions may be asked to make immediate changes.

Please contact us for information pertaining to TradeStation Securities margin requirements and concentration parameters.

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Important Notes:

Margin requirements are structured for a diversified portfolio. Accounts that are using margin for holding concentrated positions may be asked to make immediate changes.

Please contact us for information pertaining to TradeStation Securities margin requirements and concentration parameters.

Margin trading involves risks and it is important that you fully understand those risks before trading on margin. The FINRA Margin Disclosure Statement outlines many of those risks, including:

  • You can lose more funds than you deposit in your margin account.
  • Your brokerage firm can force the sale of securities in your account.
  • Your brokerage firm can sell your securities without contacting you.
  • You are not entitled to an extension of time on a margin call.