Series 24: 3.2.2.4.3. Buying Power Of Day-Trading Accounts

Taken from our Series 24 Online Guide

3.2.2.4.3. Buying Power of Day-Trading Accounts

The minimum maintenance requirement for a day-trading account is 25%, the same as for the margin account of a trader holding a long position.

Equity over and above the minimum maintenance requirement for a day-trading account is called the maintenance margin excess. Day-trading accounts have a buying power of four times the maintenance margin excess. For example, if a day trader holds stock having a current market value of $600,000, his required maintenance margin is $150,000 ($600,000 / 4). If he has equity in his account of $200,000, his main

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