An Intraday Margin Deficit (IMD) is an account deficit that is created as a result of exceeding a margin account’s Intraday Margin Level (IML).
- A margin account’s IML is equal to 4X the account’s previous business day’s closing excess equity value.
- Keeping an excess equity buffer can help reduce the chance of trading into an IMD.
This deficit must be covered within 5 business days of the violation trade date by a deposit of funds and/or securities liquidation (if eligible) to avoid an account closing restriction.
How to cover an Intraday Margin Deficit (IMD):
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Deposits: A net deposit of funds equal to or greater than the IMD amount will satisfy the call.
- Withdrawing funds while having an opening IMD will result in the IMD deficit increasing by the amount of the withdrawal.
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Liquidation of securities: Liquidation of securities that were held in the account prior to the issuance of the IMD may reduce or satisfy the call. The amount credited toward the IMD is based on the applicable maintenance requirement of the security sold.
- Example: Selling $1,000 of a security with a 35% maintenance requirement will result in the IMD deficit being reduced by $350.
- If an account has more than one outstanding IMD, the sum of all outstanding deficits must be fully covered before the IMDs can be closed.
Note, Up to 3 IMDs can be covered via liquidation during any rolling 12-month period. After reaching this limit, only cash deposits will count toward satisfying future IMDs.
To learn what will happen if someone fails to cover an IMD, review the following support article.
Note: All PDT changes are taking place on 06/04/2026.