Will I receive an RT call or am I safe?
Will I receive an RT call or am I safe?
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Jason Parker · External communityPost link
External question — Personal Finance Stack Exchange
Author: Jason Parker
Original post: https://money.stackexchange.com/questions/140950
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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I just opened a position on WeBull to short a stock with a market value of $1,554. The total amount of cash in my account is $5200, but my day trading and overnight buying power is saying 0 after I open my position. Will I receive an RT call if I hold this overnight or will I be covered on this position with the amount of cash in my account?
Is it my equity/cash or buying power which needs to be 50 percent of $1,554 that I have tied up in the stock?
Thanks in advance.
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Bob Baerker · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Bob Baerker
Original post: https://money.stackexchange.com/a/140952
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Standard Reg T margin is 50% so the requirement for shorting a stock with a market value of $1,554 could be $777. Why did I say could be?
Stocks below $5 are not marginable
Leveraged ETFs have a higher margin requirement
Brokers can have a higher margin requirement than Reg T
Some of your cash could be tied up by other margined option or stock positions
Therefore, I can't really answer your question because there are other possible mitigating factors.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Jason Parker Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/140950 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I just opened a position on WeBull to short a stock with a market value of $1,554. The total amount of cash in my account is $5200, but my day trading and overnight buying power is saying 0 after I open my position. Will I receive an RT call if I hold this overnight or will I be covered on this position with the amount of cash in my account? Is it my equity/cash or buying power which needs to be 50 percent of $1,554 that I have tied up in the stock? Thanks in advance.
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