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  • I just got margin called!

     Curunir updated 1 year, 3 months ago 3 Members · 5 Posts
    AMC
  • Jesse

    Member
    June 5, 2021 at 5:01 pm

    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.

  • CrayonMuncher

    Member
    June 6, 2021 at 2:26 am

    <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>

    https://www.webull.com/hc/categories/fq351-What-s-the-difference-between-margin-and-cash-account

    </div><div>

    1. Buying Power

    The buying power in a cash account is the maximum dollar amount that is available for placing trades.

    Cash Account

    Simply put, in a cash account, your money is your buying power. You cannot borrow funds to place trades.

    Margin Account

    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).

    Might want to also check this out: https://www.webull.com/hc/categories/fq327

    Sounds like the account doesn’t have enough to cover the market value of the security because of the volatility.

    If you don’t plan to do much with the account and want to keep a small balance and avoid margin calls, you can also have them change your account from a margin account to a cash account.

    https://www.webull.com/hc/categories/fq353?caseCode=personal&visitSource=10

    </div>

    • This reply was modified 1 year, 3 months ago by  CrayonMuncher.
  • Jesse

    Member
    June 6, 2021 at 3:15 am

    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.

    • CrayonMuncher

      Member
      June 6, 2021 at 3:32 am

      That sound very fishy. There shouldn’t be margin calls on a cash account.

      I wouldn’t doubt if they made an error like they did in this reddit post a while back.

      Margin Calls on Cash Accounts? from Webull

      • Curunir

        Member
        June 6, 2021 at 6:30 pm

        Agree. There are no margin calls on cash accounts. This is probably a bug and customer service should clear it up for you.

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