Your day trade calls require attention.
Summary of User’s Problem and Solutions Discussed:
- The user, loobles, is receiving a notice to deposit funds into their account due to a day trade minimum equity call, despite having no negative balances or margin balance.
- Fidelity explained that if a user has made at least 4 day trades within a 5-day period, their account is designated as a Pattern Day Trader (PDT), requiring a minimum margin equity of $25,000 to continue day trading.
- If the minimum equity is not met, the user has 5 business days to deposit funds to meet the requirement, or they may face reduced buying power for 90 calendar days.
- Fidelity suggested contacting their customer service for personalized assistance if the user has further questions or needs clarification regarding their account.
Here’s the full thread
Please deposit a minimum of $XXX into your account to cover your day trade minimum equity call. Please maintain over $25,000 in margin equity in your account to trade in margin.
I’m getting this notice in my balances. Why? I seme to have no restrictions and my balances are not negative. i have no margin balance
Thanks for reaching out to us today. Allow me to explain this for you.
Let’s start by defining a day trade. A day trade is defined as opening and closing the same position in a margin account during the same business day. Please note that day trading does not apply to cash accounts by this definition. To continue, if you have completed at least 4-day trades (by definition) within a 5 business day period, your account will receive the PDT designation.
Once your PDT designated, your account must maintain a minimum margin equity of $25,000 at the start of the business day to be eligible for day trading. This can be referred to as a “call,” but to be precise, it’s a “day trade minimum equity call.” If your account’s margin equity is less than $25,000, you have 5 business days to meet the minimum equity call by depositing cash or increasing regulatory net worth value to meet the $25,000 minimum. Failure to meet the minimum equity requirement may result in the account having reduced or restricted buying power. If restricted, you will be limited to placing trades in type cash up to your “Cash Buying Power” for 90 calendar days.
Trading FAQs: Margin: https://www.fidelity.com/trading/faqs-margin
If you would like to discuss this further, please contact a member of our customer service team by chat or phone, as they will be able to take a closer look into your account. Associates are available 24 hours a day, 7 days a week, and can be reached using the link below.
Contact Us: https://www.fidelity.com/customer-service/contact-us
If you have further questions outside of this, please let us know. 🟢
thank youu
You got it, @loobles! I’m happy I could help.