Margin and Day Trading Rules Quiz

Margin rules come down to a few percentages and one loan that doesn't shrink when the stock does. Work out the call prices and the new intraday margin rules here before your broker works them out for you.

AI-assisted, reviewed by John James →

Questions: 10
Level: Intermediate
Time: 5 min

Question 1 of 10

1A new margin account holds 12,000 of equity and no positions. Under Regulation T's 50 percent initial requirement, what's the overnight buying power, before any lower broker limits?

A 12,000 B 24,000 C 48,000 D 36,000

2You buy 400 shares at 60.00 in a margin account, putting up 12,000 and borrowing 12,000. At the FINRA 25 percent maintenance minimum, what share price brings the margin call?

A 40.00 B 45.00 C 30.00 D 33.33

3Same position: 400 shares bought at 60.00 with a 12,000 loan. This time your broker sets a 40 percent house requirement on the stock. Where's the call price now?

A 40.00 B 44.00 C 50.00 D 54.00

4In that account, with a 12,000 loan on 400 shares, the stock closes at 36.00 and the requirement is 25 percent. How much cash do you need to deposit to meet the call?

A 3,600 B 2,400 C 4,800 D 1,200

5Your margin account drops below the maintenance requirement, and the broker's notice gives you a period to deposit funds. What can the broker do before that period is up?

A Nothing, until the stated deadline has passed B Sell positions it chooses, without contacting you first C Sell only the position that caused the shortfall D Sell only after you approve the positions to go

6FINRA's amendments to Rule 4210 took effect on June 4, 2026. What did they do to the pattern day trader framework?

A Replaced it, day trade count and 25,000 minimum included, with intraday margin requirements B Kept the day trade count but raised the minimum equity to 50,000 C Kept the day trade count but cut the minimum equity to 2,000 D Extended the day trade count to cash accounts as well

7FINRA's new intraday margin standards are in effect, yet your broker still counts day trades and restricts margin accounts under 25,000. During the transition, is that allowed?

A No, the old rules ended at every firm on June 4, 2026 B No, unless the account holds less than 2,000 C Yes, firms may keep the old rules until they switch, by October 20, 2027 D Yes, the old rules apply to every account opened before June 2026

8You deposit 12,000, borrow 12,000 and buy 400 shares at 60.00. Bad news comes out overnight, the stock opens at 25.00, and the broker sells you out at the open. Where does that leave you?

A You lose 12,000 and owe nothing more B Your loss stops at the 40.00 call price C The broker absorbs anything beyond 12,000 D You lose 12,000 and owe the broker 2,000

9You carry a 30,000 margin debit at a hypothetical 9 percent a year, and your broker uses a 360-day count. Roughly how much interest builds up over a 30-day month?

A 225.00 B 2,700.00 C 7.50 D 675.00

10Your broker raises its margin base rate after a Federal Reserve rate move. You borrowed most of your debit balance three months ago. What generally happens?

A The old rate stays fixed on the money you already borrowed B The new rate generally applies to your whole debit from its effective date C The new rate applies only once your balance crosses a new tier D Nothing changes until you close and reopen the margin loan

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