A Regulation T (RT or Reg T) call occurs when a margin account executes an opening buy or short sell trade and does not meet the minimum initial requirement. A Reg T call is most often caused by an option assignment or holding a position overnight that was established with intra-day leverage (Day Trade Buying Power).
If the call is not met before the due date (T+4), a forced liquidation will be performed to satisfy the call. The clearing firm may charge fees if forced liquidations are made to meet the call. You can click the link at the end to know how to meet an RT call. Please note: Webull may force liquidate to meet the RT call at any time and at our discretion.
If a Reg T call goes past due or your equity falls below the SRO requirement of 25% and you meet the call by liquidation you will be issued a liquidation penalty. A liquidation penalty is synonymous with a Good Faith Violation and an account is allowed 3 every rolling 12 months – meaning a 4th penalty will result in a restriction. If the Regulation T call is caused from an option exercise/assignment and is met in full on T+1 no liquidation penalty will apply.
Furthermore, if you trade into 3 or more RT calls within 90 days this trading activity constitutes an abuse of intra-day leverage (DTBP) and will result in a restriction or review of your account.