Portfolio margin accounts are subject to margin maintenance, minimum capital and day-to-day trading calls. When you click on the extension of the summary section, details about margina calls by type and amount are displayed, including the impact of your shares and changes in the market value of your calls positions since the previous close. The list of calls is also broken down by type, date issued, due date, status, current amount, initial amount and amount due. After you sign up for Limited Margin, you`ll see new balances in your IRA account. On the balance tool under Margin Limited in the Cash Available to Trade section there are two new balances: Intraday Buying Power and Day Trade Buying Power (Start of Day). Intraday Buying Power – This field of balances applies only to Pattern Day Trade accounts and limited margin accounts and is the amount that can be used to purchase shares or options for day trading. Unlike Day Trade Buying Power, this value is updated intraday to reflect daily transactions, money movements in and out of the account, the basic currency and purchasing power attributed to open orders. Day Trade Buying Power (Start of Day) – This balance area applies only to Pattern Day Trade accounts and limited margin accounts. It is an early-day value and does not update during the trading day to reflect trade or cash flows. A Pattern Day Trade account or limited margin account is required to hold a minimum margin capital of $25,000. If the margin`s equity falls below this value, this field name changes to a minimum equity call, and the value shown is what must meet the minimum capital requirement. Note: Intraday purchasing power will not exceed day trade purchasing power ( early day) – Every day trading losses will derecompose intraday purchasing power, while day trading will offset losses in profits until the start of the day has reached the balance.
Example: Day Trade Buying Power (Start of Day) – $50,000, followed by a daily loss of $5,000; New intraday purchasing power will be $45,000. The next day trading is a profit of 3,000 USD, new intraday buying power will be 48,000 USD, third day of trading is a gain of 5,000 USD, Intraday Buying Power will be 50,000 USD.