Other Margin Accounts

What this video covers

• The two conditions that must BOTH be met to flag a customer as a pattern day trader: 4 or more day trades in 5 consecutive business days AND those day trades exceeding 6% of total trades in that period
• Why high total trade volume can rescue a customer from pattern day trader status even with exactly 4 day trades
• The $25,000 minimum equity requirement for pattern day traders, and the exam trap that this can be cash plus eligible securities (not all cash)
• How day-trading buying power is calculated: 4 times the prior day's closing equity minus maintenance requirements, with a 5-business-day deadline for margin call deposits
• How portfolio margin uses risk-based computer modeling instead of Regulation T (Reg T) fixed percentages, and why hedged portfolios get lower requirements
• The portfolio margin minimum equity tiers: $100,000 for full real-time intraday monitoring, $150,000 for partial, $500,000 when some trades are executed away, and $5,000,000 for day trading in a portfolio margin account
• The five mandatory disclosures in the margin disclosure statement, including the firm's right to liquidate without notice and the customer's lack of entitlement to time extensions on margin calls