Like the title says I just got margin called using webull. My son introduced me to webull in February cause he wanted his free share when I opened an account so that’s what I did. Well, this isn’t my main account for trading so my positions are small. How small, I’ve only deposited a total of $102.00 until today which I had to deposit $5.00 or I had to liquidate 4x the amount by June 7th.
I don’t get it? How can my account fall below the minimum requirement? I’ve only put $102.00 and now I’m up 7x what I initially put in! Can someone please explain to me what’s happening.
And yes the stock is AMC but also the $2.00 is for dogecoin.
<div>Found this on their website and underlined the parts that seem to fit your situation. Not sure when you made the transactions but it’s possible the trades
haven’t settled in your account yet (T+2 for stocks) so the account
balance you currently have is shy of their minimum requirement.</div><div>
The buying power in a cash account is the maximum dollar amount that is available for placing trades.
Simply put, in a cash account, your money is your buying power. You cannot borrow funds to place trades.
A Margin account allows you to leverage the funds and Securities you already own to purchase additional securities. There are two kinds of buying power: Day-Trade Buying Power (DTBP) and Overnight Buying Power (ONBP)
Day Trade Buying Power refers to the amount available to day trade for the day. Day-trade buying power is equal to the equity in your account at the close of business on the previous day, less the Self-Regulatory Organization(SRO) requirements, multiplied by up to four. Each security will have an SRO requirement, which is based on the exchange minimums allowed.
Overnight buying power refers to the money available to buy securities and hold the position overnight. In the majority of cases, this amount is simply double the cash on hand.
Margin trading is only available for margin accounts with no less than $2,000 net account value.
2. Settlement Rules (Funds Settled)
Stock trades settle 2 business days following the trade date (T+2) and option trades settle 1 business day following the trade date (T+1).
Thanks for the info, funny thing is it’s a cash account and not a margin account that I opened in February. Somethings fishy going on with webull and if they keep it up I’ll just close my account and transfer money out and be done with them.