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Zecco.com » More Investment Ideas » Investments Resources » Day Trading and EM Margin call
Last post 08-12-2008, 1:00 PM by sasidharp. 5 replies.
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  •  05-21-2008, 1:09 PM 29498

    Day Trading and EM Margin call

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    My account was closed today with DT and EM calls eventhough I sold off all my securities. Does this mean I cannot make any transaction for another 90 days ? Is there any penalty involved for DT calls ? DT call required a deposit of $10,000 more than my current securities. Since I have sold off all the securities, does it take care of DT or do I still need to deposit cash ?

    Does this have any effect on my future trading or trading in another brokerage ? Any insight is greatly appreciated.

  •  05-21-2008, 4:47 PM 29515 in reply to 29498

    Re: Day Trading and EM Margin call

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    Selling positions generally will not meet margin calls because funds from the sale are not actually available till settlement.  Further, selling rather than depositing cash also has a downside (read the margin agreement).  And, the Day Trading call, once generated, must be met regardless of whether the positions are still open.

    Wisdom suggests that if you do not have $25,000, do not intentionally day trade.  Further, if you do not have the cash to cover what you buy on margin, don't.

     

  •  05-21-2008, 4:59 PM 29517 in reply to 29498

    Re: Day Trading and EM Margin call

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    Call the customer service and tell them that you do not have the money for daytrading. If it is your first time, they will let you ride it for free.

  •  05-22-2008, 5:06 PM 29606 in reply to 29515

    Re: Day Trading and EM Margin call

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    Thank you for the response.

    That wasn't intentional. I didn't even know what day trading call is until yesterday. Zecco didn't accept my request to modify the account to a regular account instead of margin. So, I can't trade no more. But that's not my concern. What happens to all those funds that I am supposed to get from selling off the positions ?

    Would I be able to withdraw all my funds and how soon ? I cannot meet the day trading margin as it requires a huge deposit in relatively less time. So, would I end up paying any penalty for this call ?

     

  •  05-22-2008, 6:17 PM 29610 in reply to 29606

    Re: Day Trading and EM Margin call

    Reply Quote
    Call the customer support and tell them that you did not intend day trading and ask them to remove your margin call so that you can trade. Because it was your first time, zecco can do that, but if you repeat it you will have to wait 90 days according to SEC rules. Also, there was a nice thread on day trading in the forums. It should not be hard to find. I recommend you read it if you don't want to read the rules on the SEC website.

  •  08-12-2008, 1:00 PM 35244 in reply to 29610

    Re: Day Trading and EM Margin call

    Reply Quote
    I also got into same problem and as you said i called customer care and told that this is my first time.

    They told that they will enable it.

    Thanks for the advise, it really helped me
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