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.

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. The reduced 2x buying power automatically reverts to 4x 30 days after the due date of the third Reg T call. 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 Equity Maintenance (EM) Call?

An EM call is triggered when a Pattern Day Trader (PDT) account closes the prior business day below the $25,000 minimum Net Account Value (NAV) requirement. Only positions held in the margin account count toward this requirement. Crypto, futures, event contracts, and any assets held outside the margin account are excluded from the calculation.

How to resolve

Your account must close above $25,000 NAV by 4:00 PM ET, either through deposits or an increase in position value. Once met, the call is removed the following business day. Alternatively, a one-time PDT Flag Reset can be used. You can find more information on day trading rules here.

What happens if I don't act

• Before the due date: 0x DTBP and 2x ONBP
• After the due date: 0x DTBP and 1x ONBP
• Placing day trades while an EM call is open will trigger a DT call on your account.
• Any day trades made while the PDT reset request is processing will count towards your day trade count the following day, potentially leading to reclassification as a PDT.

Webull does not force liquidate accounts with past-due EM calls. The due date listed on an EM call is a suggested date, not a mandatory deadline.

Good to know

• NAV is calculated using 4:00 PM ET closing prices of positions held at 8:00 PM ET, plus the cash balance at 8:00 PM ET.
• Cash withdrawals before 8:00 PM ET may reduce your NAV below $25,000 and trigger an EM call.
• Trading securities after 4:00 PM ET at prices higher than the official close may decrease your end-of-day NAV and potentially trigger an EM call.
• The platform displays option values using the mid-price, while EM calls use the closing price.

What is a Day Trade (DT) Call?

A DT call is issued when you exceed your Day Trading Buying Power (DTBP) and then place a day trade. This most commonly results from trading on intraday profits. A DT call may also occur if you place a day trade while an EM call is active.

How to resolve

A DT call can be met by depositing funds, transferring in securities, or liquidating securities that were purchased before the day trade was incurred. If transferring in or liquidating securities, the value applied toward the call depends on the security's maintenance requirement. For example, a security with a 25% maintenance requirement will have 75% of its value applied toward the call, meaning you may need to liquidate more than the call amount. Options liquidations apply 1:1 toward the call. The call will be removed one business day after it is met, but deposited funds must remain in the account for two full business days to avoid the call being reissued.

What happens if I don't act

The due date for a DT call is 3 business days after the call is issued. Your buying power will be progressively restricted:

• PDT accounts before the due date: 2x DTBP and 2x ONBP with no same-day replenishment
• Non-PDT accounts before the due date: 4x DTBP and 2x ONBP with no same-day replenishment
• After the due date: 0x DTBP and 1x ONBP with no same-day replenishment

The DT call will automatically expire 90 days after the due date if not met.

Good to know

Any withdrawal made while a DT call is open will increase the call amount.

What is an EM/DT Call?

An EM/DT call is issued when you place a day trade while an EM call is active on your account. It can also occur when your NAV falls below $25,000 while a DT call is open.

How to resolve

Deposit the greater of the EM or DT call amount in cash or marginable securities. If no deposit is made, you may use a PDT reset to remove the EM call if available. The DT call will expire 90 days after its due date if not met. Liquidate-only restrictions will be lifted within 1–2 business days once both calls are resolved.

What happens if I don't act

Your account will be restricted to liquidation only with no DTBP or ONBP until both calls are resolved.

Good to know

While an EM call is open, placing any day trade will automatically trigger a DT call.

What is a DT/DT Call?

A DT/DT call is issued when you exceed your Day Trading Buying Power (DTBP) and place a day trade while in an active DT call, or when you place a day trade while an active DT call is past due. When a DT/DT call is issued, stricter account restrictions apply until the call is resolved or expires.

How to resolve

If neither call is past due, deposit enough to cover the higher of the two call amounts. Once either call is past due, both DT calls must be met separately and you must deposit the total combined amount. Both calls will expire 90 days after the due date of the second call if not met.

What happens if I don't act

Your DTBP and ONBP are immediately reduced to $0 and your account is placed in liquidate only status until both DT calls are 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.