Series 14: 4.5.1. Insufficient Margin For Pattern Day Traders

4.5.1. Insufficient Margin for Pattern Day Traders

Recall that the special maintenance margin requirement is 25% for most equity securities. Some equity securities (such as penny stocks, new IPOs, and over-the-counter securities traded on the OTC Bulletin Board) are not margin eligible and demand 100% of their value in the day trading account.

When the equity in a customer’s account is not sufficient to meet the f