These assets generally carry higher volatility or lower liquidity, leading regulators and brokers to prohibit borrowing against them:
While it sounds like a simple "cash balance," it is actually a dynamic calculation based on two main factors: non margin buying power
Cash Account Balances and Descriptions - Fidelity Investments These assets generally carry higher volatility or lower
: Many brokers, such as Fidelity Investments and Public , include a "maintenance buffer" (often around 10%) in this calculation to reduce the risk of an immediate margin call if the market fluctuates. Common Non-Marginable Securities For instance, if you own $100 of a
: Your settled and available cash balance, net of any pending orders.
: In a margin account, you can leverage the value of marginable securities you already own to buy non-marginable ones. For instance, if you own $100 of a 50% marginable stock, you may have an additional $50 in non-margin buying power to use for other trades. Key Characteristics