What is an RM call?

An RM call occurs when your margin equity falls below your maintenance requirement. If the equity in the account is decreasing due to market activity, it can trigger an RM call. Check your maintenance requirement in the ‘Assets’ > ’Risk Level’ page.

Let’s say you have $6,000 of cash in your margin account. To establish your first position, you decide to purchase 200 shares of XYZ stock at a price of $60 with $6,000 of cash and $6,000 of margin.

Assume that the maintenance requirement is 30%. This means your equity should be at least 30% of the market value in your account.

As we can see below, the Maintenance Requirement is constantly updated based on market price. If the stock price drops to $40, your Margin Equity is below the Maintenance Requirement by $400. You’ll receive a $400 RM call on the next trading day.

Note: An RM call will be based on 4 pm EST closing prices and the account holdings as of 8 pm EST. If your maintenance requirement exceeds your margin excess, an RM call will be active on your account the following trading day.

What happens if you get an RM call?

1. When you have an RM call on your account, you will not receive any provisional buying power from your pending deposits until the call is met. Your buying power may become available intraday when your margin equity is above your maintenance.
2. If the call is not met before the due date, Webull may have to liquidate some of your positions to satisfy the call.

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How do you meet an RM call?

You can resolve an RM call in one of the following ways:

• Depositing funds
• Liquidating assets
• Depositing marginable securities
• Market appreciation

Continuing the example above, you have a $400 RM call in your account and the only position in your account is 200 shares of XYZ stock with a maintenance requirement of 30%.

To meet the RM call, you can either deposit $400 cash in the account, or liquidate $1,200 (3*$400) worth of XYZ stock.

The call will be removed 1-2 business days after the required action.

How do you avoid an RM call?

• Leave plenty of cash in your account as backup.
• Place stop loss orders to protect your position. In the example above, you could place a stop order to sell the shares at a stop price of about $43 to avoid an RM call.