A Pattern Day Trader Flag is a regulatory designation for investors that execute four or more day-trades within five trading days’ time. Once you are designated as a Pattern Day Trader, FINRA requires account holders to maintain at least $25,000 of equity in their account as of the close of business every day. The PDT rule only applies to margin accounts and so does the Day Trades Left feature. If your margin account receives this designation while it has a net account value below $25,000, an Equity Maintenance (EM) call is issued.
An EM call or Equity Maintenance call is issued to those who have been designated a Pattern Day Trader and have fallen below the required $25,000 minimum equity. The EM call will restrict you from day trading and receiving intra-day replenishment on closing transactions. If you complete a day trade while in an EM call your account will receive a DT call for the total notional amount of the trade and your account will be closed until both calls are met or 90 days.
The EM call amount will be the difference between $25,000 and your account equity value at the end of the day. Essentially, it’s requiring you to deposit funds to bring your equity above $25,000. To meet the call, accounts can deposit cash or securities to bring their equity above $25,000. You must end the day above $25,000 for the call to be closed. We will use the closing price of the regular session to calculate your equity. If, however, you are unable to meet the EM call by bringing your account value above $25,000, Webull offers a One-Time reset for your PDT violation that can only be used once every 90 days. Please see screenshots below to apply for a PDT reset.