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Under U.S. regulations (FINRA), there are limits on how much you can use for day trading – even if your account balance is above US$25,000. This limit is known as your Day Trade Buying Power (DTBP).

A Day Trade Call (sometimes referred to as a margin call) is issued when your total intraday trading activity exceeds your DTBP.

How DTBP is calculated

There are three common scenarios that affect your DTBP.

Account over US$25,000 and no open Day Trade Calls

• DTBP = 4× Exchange Margin Excess

• You can place multiple day trades, but each must remain within your available DTBP

• A new trade can only be placed after the previous one is fully closed

Example:
If your DTBP is US$28,000, you can buy and sell stock A for under US$28,000. Once that trade is closed, you can repeat with another trade – provided each one stays under the limit.

No Day Trade Call will be triggered if each trade is closed before starting a new one and you don’t exceed your DTBP.

Account over US$25,000 with an open Day Trade Call

• DTBP = 2× Exchange Margin Excess

• If the Day Trade Call is due and not met, DTBP is reduced to 1× Exchange Margin Excess

• Trades are calculated in aggregate, meaning the total value of all intraday buys must stay within your DTBP

Example:
With US$28,000 DTBP:
If you place three trades and the combined value of the buys is under US$28,000 – no issue.
If the total exceeds US$28,000 – a Day Trade Call will be triggered.

Account under US$25,000 at the previous day’s close

Your DTBP is restricted. Exceeding it triggers a Day Trade Call based on the size and type of your largest trade on that day.

Day Trade Call = Percentage of your largest intraday buy:

• Standard securities: 25%

• 2× leveraged ETFs: 50%

• 3× leveraged ETFs: 75%

Example:
If you place trades totalling US$10,000 in standard stocks, your Day Trade Call = US$2,500 (25%)

What happens if you exceed DTBP?

If you trigger a Day Trade Call:

• We’ll notify you by email

• You’ll have four business days to deposit funds into your Wall St account

While the call is open:

• DTBP is reduced to 2× Exchange Margin Excess

• If the call isn’t met by the deadline, DTBP drops to 1× Exchange Margin Excess

How to calculate Exchange Margin Excess

• Exchange requirement = Market value × 25%

• Exchange margin excess = Equity (cash + stocks) – Exchange requirement

What if I get multiple Day Trade Calls?

If you receive more than one Day Trade Call before resolving the first, you’ll need to deposit the highest call amount to clear the restriction.

Example:
First call = US$1,000
Second call = US$1,500
→ You must deposit US$1,500

Will my account be restricted?

If you fail to meet two Day Trade Calls, your account will be restricted from placing any day trades for 90 days or until both calls are met – whichever comes first.

You’ll still be able to place non-day trades, like buying and holding positions overnight.

Good to know

• PDT restrictions and Day Trade Calls are separate but related

• Margin rules are based on intraday activity, not just your closing positions

• Our broker partner DriveWealth may set higher equity requirements than the regulatory minimum

• Cross-guarantees between accounts are not accepted for margin obligations

Important:

Stake, trading as Stakeshop Pty Ltd, is not obligated to provide advance notice or guidance regarding day trading activity. Customers who engage in day trading are responsible for understanding and complying with all applicable regulations and tax obligations.