Margin Call Definitions

Margin Calls

If you received a margin call notification, one of the following calls types below may apply to your account.
Please read the definition that applies to you.

To clear up margin calls, please submit the required amount by ACH or Wire Transfer

**Please be advised that continued trading on margin calls can result in Apex Clearing issuing a 90-day trading restriction on your brokerage account.

REQUIRED MAINTENANCE CALL

A maintenance call will occur in an account when the value of positions purchased on margin falls to less than 30 percent of the total equity value of the account. In some cases, an account may be holding a "concentrated" or "leveraged position"* APEX Clearing may require higher deposit amounts to maintain certain concentrated or leveraged positions.

To meet a Maintenance Call issued by the clearing firm, the account holder must either deposit more money into the account or sell off some of the securities held in the account.

***** All other call types listed below (Good Faith Call, Day Trade Call, and Equity Maintenance Calls), cannot liquidate securities to meet calls.

* Concentrated positions as well as 2x and 3x leveraged ETF positions may have a 75-100 percent or more requirement due to the volatility and highly leveraged nature of these holdings.

**Securities under $3.00 are not margin eligible. Stocks under $3 must be fully paid at 100 percent. Ex: 1000 shares of a $2.50 stock requires full payment of $2500.00)

EQUITY MAINTENANCE CALL

This means your account has been identified as a pattern day trade account and your account has less than the $25.000.00 minimum required for active trading.  To meet an equity maintenance call, deposit enough funds to maintain a minimum account balance of $25000 and avoid potential trading restrictions or closing out of your account.

Call notifications look like this:

This account has an open margin call: Equity Maintenance Call (DATE): $ AMOUNT. 

To comply with the equity maintenance call, complete a Wire or ACH by the due date in the amount of the Equity Maintenance Call listed on your notification.

Why do I have an Equity Maintenance Call?

Your account balance is below $25,000 and has been identified as a pattern day trade account.

 

GOOD FAITH CALL (Trading in a Cash or IRA Account on Unsettled Funds)

You receive a good faith call for exceeding cash available to trade (means your account traded on unsettled funds). When stocks are sold you must wait for the trade to clear. In Cash accounts and IRA Accounts the settlement period is trade date plus 2 business days (T + 2). For example, if you buy stocks on a Tuesday, your funds will settle on Thursday.

A Good Faith Violation notice does not require you to deposit funds. The amount reflected on the GFV notice is the amount that was over traded in unsettled funds.

Each GFV notice is considered (1) violation. Good Faith Violations accumulate during a 12 month time frame.  4th strike = 90 day account restriction and a 5th Strike will cause the Account to be Closed.

Cooltrade Users:

If using Cooltrade, please contact Cooltrade to correctly set up your system to trade in a cash account

Email: [email protected]

DAY TRADE CALL (Resulting in a FED REG T Margin Call)

You receive a day trade call for exceeding the BP available to trade (means you held overnight positions in excess of buying power available in your account).  For example, if you had $100,000.00 in buying power available, and held $110,000.00 in overnight positions, you would get a margin call for $5,000.00 (10,000 over BP requires 50 percent=$5,000)

Reg T Calls (RT or Fed)

A Regulation T/Fed Call is issued when a customer exceeds the ONBP issued in a margin account on a given day.  
• These calls are due on the fifth business day from trade date (T+5).  
• Fed calls can be met with:
1. A deposit of money for the full amount
2. A deposit of marginable securities worth 2x the call amount, or
3. A liquidation of 2x the call amount  
• If multiple calls are outstanding, each call must be met separately.  If necessary an extension can be filed. (see Extension section)
• Apex does not accept late payments to satisfy Reg T Calls.
• If the call is not met by T+5, the account will be subject to liquidation and will receive a penalty.
• Additional penalties such as liquidation charge, account restriction, or closure may be added to the account (see Penalties section).

Wiring Instructions

All wired funds are to be sent as follows:

BMO Harris Bank
111 W Monroe St  
Chicago, IL 60603

ABA: 071000288
FFC:: APEX Clearing Corp - Acct# 3713286

One Dallas Center 350 N. St Paul Suite 1300 Dallas, TX 75201
FFC: Customer Name and Account Number (Wires Require Your Brokerage Account # or will be Returned)

* Typically the fastest method of funding your account. Wire transfers are usually received the same day that they are sent by your financial institution and will post to your account the day after they are received. * Funds will be returned if the funds are deemed Third Party (defined as any account other than one of the same name as the account title of your account) or if the account is not opened. * Incoming funds can only be sent in U.S. Dollars (USD$). We do not accept foreign currencies.