Margin Calls in a Margin Account

What is a margin call?

If your margin account falls out of compliance with certain requirements, a margin call may be issued. Below are some general rules that apply to all margin calls, followed by detailed explanations of each call type and how to resolve them.

• Instant buying power from pending ACH deposits will not be applied to your account while a margin call is active.
• Intraday buying power replenishment from closing positions is not available while a margin call is active, with the exception of RM calls.
• Margin calls are removed the business day after they are met. They cannot be removed intraday.
• Wire deposits will take one additional business day to post to an account with an active margin call.

How do I view margin call details?

You can view detailed information about your account's current margin excess and any active margin calls across all platforms using the following instructions:

App

1. Tap the Account icon at the bottom center of the screen to access your account.
2. Select your margin account if applicable.
3. Select the Risk Level icon.
4. Tap on the margin call to view the start of day amount due and call due date.

Lite Mode

1. Tap the Invest icon in the bottom left corner.
2. Select Buying Power.
3. Select Caution next to Risk level (if no margin call is present, select Safe).
4. Tap on the margin call to view the start of day amount due and call due date.

Desktop

1. Select the Account icon on the left side panel (if hidden, click on More).
2. Scroll down to the Risk Level section and select Caution (if no margin call is present, select Safe).
3. Select the margin call to view the start of day amount due and call due date.

WebTrade

1. Select the Account icon on the left side panel (if hidden, click on More).
2. Select Caution next to Risk level (if no margin call is present, select Safe).
3. Select the margin call to view the start of day amount due and call due date.

What is a Required Maintenance (RM) Call?

An RM call is triggered when your account's margin equity falls below the maintenance requirement. This is caused by a decline in the value of your positions, an increase in the margin requirements for your holdings, or both.

How to resolve
Deposit additional funds or sell securities to bring your margin equity above the maintenance requirement. Meeting the call through liquidation may require selling more than the dollar amount of the call, depending on the maintenance requirement of the position being sold. For example, selling a stock with a 25% maintenance requirement requires liquidating 4 times the call amount (Call amount ÷ Maintenance Requirement).

What happens if I don't act

An RM call does not directly restrict your buying power. However, you will only have buying power available once your margin equity exceeds the maintenance requirement. If the call is not met by the due date, Webull will liquidate positions in your account to satisfy it. For example, if the due date falls on a Tuesday, Webull will liquidate on Wednesday.

Note that the RM call rules are different for cash accounts than margin accounts. If a cash account has a negative balance, Webull will liquidate positions at any time to bring the account back to positive, regardless of the stated RM call due date.

Good to know

• Your real-time margin equity and maintenance requirement values can be found within Risk Level on the mobile app, desktop app, or web interface.
• Instant buying power is disabled while the call is open.
• RM calls are calculated using the official 4:00 PM ET closing prices of all positions held as of 8:00 PM ET on the same day, so any after-hours price movements do not impact your margin equity calculation for that day.

What is a Regulation T (RT) Call?

A Reg T call occurs when there is not enough equity in your account to meet the 50% initial margin requirement. This occurs when you exceed your Overnight Buying Power (ONBP) and hold positions overnight.

How to resolve
Deposit funds equal to the call amount, liquidate marginable positions for twice the call amount, or use a combination of both. Liquidating non-marginable positions equal to the call amount will also satisfy the call. Once a sufficient deposit or liquidation is made, it may take up to two business days for the call to be removed.

What happens if I don't act

Your account will have no buying power available while in an RT call and you will only be able to close positions. If the call is not met by the due date, we may liquidate positions in your account to satisfy the requirement. For example, if the due date falls on a Tuesday and the call is not met, Webull will liquidate on Wednesday. If a Reg T call is met through liquidation after the due date, a liquidation strike will be applied to your account. A strike is also issued if account equity is below 25% when the call is triggered and a liquidation is used to cover, regardless of the due date. Strikes remain on your account for one year.

• 3 strikes: Account restricted to liquidation only. This may be removed with verbal or written confirmation that you understand how Reg T calls and liquidation strikes occur.
• 4 or more strikes: Account restricted to liquidation only for 90 days after the most recent strike. This restriction cannot be lifted early.

No strike is issued if the call is triggered by an options exercise or assignment, since those are automatically resolved through liquidation or exercise on the following business day.

Good to know

• If three Reg T calls are issued within 30 days, your DTBP is reduced from 4x to 2x. These buying power restrictions may be removed early with verbal or written confirmation that you understand how Reg T calls occur and how to avoid them.
• Past-due Reg T calls must still be met through liquidation, even if funds were deposited.
• If you temporarily exceed your Overnight Buying Power (ONBP) but close other positions before market close so that your ONBP is positive by end of day, you will not receive a Reg T call.
• Webull reserves the right to liquidate positions at any time to meet a margin call.
• Instant buying power is disabled while the margin call is open.

What is an Intraday Margin Deficit (IMD) Call?

An Intraday Margin Deficit (IMD) Call is issued when your account’s margin equity falls below its maintenance requirement intraday because of a transaction. Such transactions may include but are not limited to a securities purchase, securities sale, options exercise, options assignment or a deposit reversal.

How to resolve an IMD Call

An IMD call can be met by liquidating positions, depositing cash or securities, or account appreciation.

• Liquidations: Closing positions will reduce the margin deficit and apply toward satisfying the call. The liquidation amount required varies based on the position's maintenance requirement. Non-marginable positions satisfy the call dollar-for-dollar, while a fully marginable position with a 25% maintenance requirement must be liquidated at four times the call amount to meet it.
• Cash deposits: Cash deposits or internal cash transfers apply dollar-for-dollar toward the call amount.
• Account appreciation: If your account's margin excess increases enough to cover the margin call amount by the end of the business day, the call will be automatically lifted the following business day. For example, if you have a $500 IMD call on Monday and your account's excess gains $500 or more in value by the end of the day, the call will be lifted from your account on Tuesday morning.
• Transferring in securities: When you transfer in a security, only the portion of its equity value that exceeds the additional maintenance requirement it adds to the account can be used to reduce an IMD call. For example, if you transfer in $1,000 of long stock with a 25% maintenance requirement, your equity increases by $1,000 and your maintenance requirement increases by $250. Therefore, $750 counts toward satisfying the IMD call.

What happens if I don't act

IMD calls must be satisfied within 5 business days. If the call remains unmet after 5 business days, the account will be restricted from creating or increasing debit balances or short positions for 90 calendar days after the call’s due date or until the call is satisfied.

Good to know

• Any withdrawal while the IMD call is open will increase the call amount.
• IMD calls automatically expire 90 days after the due date if not met.

What is a Concentration Maintenance (CM) Call?

A CM call occurs when your margin account is highly concentrated in one or more positions (holding a position with a market value of 70% or more of your portfolio) and holds a debit margin balance of $500,000 or more. This call elevates the maintenance requirements for holding the concentrated position to 50%. Only marginable equity positions are considered. ETFs and options are excluded.

How to resolve

A CM call can be resolved by meeting any of the following:

• Reduce your concentration below 70% by selling the concentrated position or buying other securities.
• Reduce your debit balance below $500,000 by depositing cash or selling securities.
• Cover the elevated maintenance requirement by depositing cash or selling securities. Non-marginable securities and options apply 1:1 toward the call. For marginable securities, divide the call amount by the maintenance requirement to determine how much to sell. For example, a $100,000 CM call with a 50% elevated requirement would require selling $200,000 worth of that position.

What happens if I don't act

If you are unable to deposit funds or close positions by the due date, your account will be restricted to liquidation only. Webull may liquidate positions in your account to cover the call.

Good to know

• ONBP and instant buying power from pending ACH deposits are unavailable while the call is active.
• CM calls are based on 4:00 PM ET closing prices and account holdings as of 8:00 PM ET.
• Concentration alone does not trigger a call. A call is only issued if the account is in a deficiency due to the elevated maintenance requirements.

The required maintenance percentage increases based on your concentration level. Below are the concentration requirements:

Elevated maintenance requirements are not available to be viewed on the app at this time.