What is a Reg-T Call?
Also known as a Regulation-T Margin Call
A Reg-T (RT) call is issued when a margin account makes a transaction that exceeds its available buying power. Generally, a Reg-T call is issued after an assignment or auto-exercise of an option if there is not enough account equity.
When is a Reg-T Call due?
Typically, Five trading days after the trade date
Reg-T calls are generally due 5 trading days after the call is generated (T+5). However, tastyworks reserves to require the call to be met sooner.
How can I meet a Reg-T Call?
Reg-T calls can be met by depositing money or fully paid for marginable securities.
Closing positions may satisfy a Reg-T call as long as it generates sufficient margin release. Closing positions to meet a Reg-T call will result in a liquidation strike. Reg-T calls not met by a deposit by their due date will result in a liquidation strike. Multiple liquidation strikes within a rolling calendar year will result in the following:
- Liquidation Strikes 1-3: Strike Issued
- Liquidation Strike 4+: 90-day restriction (Closing only)
Please note: Liquidations that occur on the day following an exercise/assignment will not be issued a liquidation strike.
How do I know if I met the Reg-T Call?
Positive buying power = Call is met
Generally, if you are in a Reg-T call your options buying power is negative. When depositing funds or securities, the amount must be equal to or greater than the negative buying power amount. When making a deposit, we suggest going a little over your negative buying power amount to allow yourself a cushion. However, if you are closing positions, then you'll know if you met the call once your buying power returns positive.