If you are a pattern day trader (PDT) with an account equity of more than $25,000, here is how you can get more DTBP:
1. Keep an eye on your initial DTBP each day, and use your remaining DTBP in a rational way. The DTBP is calculated as two or four times the portion of your account equity in excess of your maintenance margin at the close of the previous trading day. If you have not received any Day Trading Margin Call (DT Call) and your account equity is greater than $25,000, your DTBP will be restored at the beginning of each day.
2. Make a reasonable trading plan. It is recommended that you keep the proportion of your overnight position at a reasonable level. The larger the proportion, the less your DTBP available for the next trading day. In addition, depositing cash can increase your future DTBP.
3. If you received a day-trading margin call (DT Call) which has not yet met, you DTBP will be reduced. You have five business days to deposit funds and meet the DT Call. If you fail to do so, you will not be allowed to establish any new position for 90 days until the DT call is met.
Note: All PDTs need to watch out for their DTBP. Each time a day trade exceeds the DTBP, a DT Call will occur. Non-PDTs are not subject to DTBP and therefore will not receive any DT Call. If you are mistakenly designated as a PDT, you can apply to remove it. For details, please refer to this page.