Upbeat music plays throughout.
Narrator: The rules that govern how much traders can borrow to buy marginable securities got a big change—one that may boost buying power.
Animation: Screen shows Schwab article from April 16, 2026 titled "SEC Approves Scrapping $25,000 Day Trader Minimum."
Narrator: The old pattern day trading requirements went out the door after FINRA adopted new intraday margin rules, effective June 2026. The new requirements supplement Regulation T standards, which sets how much traders can borrow to buy marginable securities.
Animation: Screen shows intraday margin's buying power higher than Reg T's.
Narrator: Intended to be used within one trading day, the different requirements for intraday margin versus Reg T allows traders to potentially open a position that may require higher buying power. That is assuming they exit or have sufficient funds by the end of the trading day.
The borrowing limit depends on factors like which assets you own and how risky they are. At Schwab, intraday margin is available to clients with a margin approved account that has at least $2,000 in cash or eligible securities.
Because intraday margin trades are meant to be open and closed on the same day, traders can only hold this sort of position up until 8 p.m. ET. If a position remains open after 8 p.m. and the account is still not in line with Reg T's overnight buying power requirements, a margin call will be issued for the amount over the Regulation T levels.
We're going to go over the possible benefits and risks involved with intraday margin, but first let's review some of the basics about margin.
At its core, margin trading involves borrowing funds from a brokerage to place trades, using assets in the account as collateral. This structure can provide greater flexibility and leverage, allowing traders to control larger positions with less capital. While this leverage can amplify potential returns, it can also significantly increase losses.
In order to trade using margin, there are requirements for initially making a purchase and maintaining that position.
For both Reg T and intraday, the initial margin requirement is the collateral—it's the amount of cash or eligible securities a client must have when they make the trade. Then, after the trade has been made, there's a maintenance margin requirement, which is the amount of cash and eligible securities a trader needs to hold a position.
The difference in initial margin requirements for intraday and Reg T is what allows for higher potential buying power. Under Reg T, traders are limited to borrowing 50% of marginable securities they might buy for the initial margin.
But now for intraday margin, the initial margin requirement is 25%—but is also tied to the maintenance margin.
For both intraday and Reg T, the maintenance margin is 25% for most stocks, though it can be higher depending on the risk level of the assets in your portfolio.
Keep in mind borrowers pay interest for as long as a settled margin loan remains outstanding. And if an account drops below the maintenance margin requirement, the account will receive a margin call.
Let's illustrate how it works with an example. Say client A has a margin-approved account valued at $10,000—$5,000 in shares of company ZYX, which is a marginable stock with a 25% requirement, and $5,000 in cash. The account is in good standing.
The math behind how both Reg T and intraday margin are calculated is complex. So, to keep focused, we're going to consider an example where a client has $15,000 in buying power under Reg T because of the amount of cash and the amount of marginable stock they own.
But with intraday margin, that client would have $35,000 in buying power.
Suppose client A wants to buy 500 shares of stock ZYX at $50 a share, which would cost $25,000. Using Reg T alone, the trade wouldn't be approved because it exceeds available buying power. However, with intraday margin, the client can buy this order.
After buying it, Client A would hold $30,000 in ZYX stock and have a cash balance of negative $20,000. The total account value would remain $10,000.
The 8 p.m. ET end of the trading day for intraday margin is important to keep in mind. While most intraday traders may plan to exit before the deadline, ideally having seen an increase in the price of ZYX, things don't always work out the way traders want.
If Client A held the position beyond 8 p.m., they would receive a Regulation T margin call based on the difference in the initial margin levels. The position might have been established using intraday margin, but they didn't have the overnight buying power to support it.
To satisfy the Reg T margin call, Client A would need to sell part of their ZYX position or deposit additional cash until they meet Reg T requirements. But it's important not to panic. Unless there is intraday risk involved, traders may have a couple of days to meet the requirements. That said, markets can be turbulent, and Schwab may initiate the sale of any securities in your account, without contacting you, to meet a margin call.
If Client A held the position overnight and stock ZYX has a big move to the upside, they could sell the position to take a profit and align their account with Reg T requirements.
Unlike the now-defunct pattern day trading rules there is no number of trades to count so this process can be repeated "Multiple Times?" within a trading day.
But there are some caveats. If the margin call isn't resolved, the trader's account may be limited to closing-only trades—no new positions can be opened. If the margin call is not satisfied, Schwab may liquidate a portion of the ZYX position, which could lock in losses. This example is only meant to be illustrative to show how intraday margin can work in a hypothetical scenario. Remember, in practice, intraday margin buying power limits vary by account and depend on multiple factors.
You can monitor your buying power for both Regulation T and intraday margin on Schwab.com under Accounts, then Balances, and on the thinkorswim® platform in the Monitor tab. By closely tracking buying power and managing positions to avoid margin calls, traders may reduce account restrictions as well as the risk of losses resulting from forced liquidations.
While intraday margin and day trading can seem appealing, they're not appropriate for every investor. It's important to fully understand the associated risks before participating. For additional Insights & Education, subscribe to the Charles Schwab YouTube channel or visit schwab.com/learn.
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