If your investing portfolio value decreases to less than your total maintenance requirement, it can cause a margin call. Resolve your account deficit by the end of the trading day to avoid margin calls and be able to open new positions.

If you are borrowing funds, and your portfolio value decreases to less than the $2,000 regulatory requirement, it may cause a margin call.

Fee charges can cause your portfolio value to decrease to less than your total maintenance requirement or the $2,000 minimum required for investing on margin.

Some of the most common causes of account reductions are fees associated with American Depositary Receipts (ADRs).

You can find all of your past fees in Account → History. Check out our fee schedule for details.

If you’re trading an options spread, your long leg generally covers your short leg. However, you may have an account deficit if the short leg of your options spread is assigned prior to the expiration date. If you’re assigned early on a short leg, it can lead to margin being used if it overspends your available buying power for your account, which can lead to an account deficit.

This is because the positions you hold are used to calculate your buying power, and at that time, the shares (for call spreads) or buying power (for put spreads) are needed to cover the deficit in your account. If your long leg is in-the-money and you would like to exercise, you can either do so in your app or contact us so we can help do it for you. You can also experience an account deficit when your long leg is exercised in anticipation of your short leg being assigned. Generally, if the short leg assignment is processed in the account, the deficit will be covered.

You can resolve an account deficit by depositing money or closing any open positions.

Margin investing is a high risk product. Leverage can magnify your losses and you could lose more than your initial capital. You must also repay your margin loan and any interest charges, which may result in the sale of securities.

Robinhood can change its maintenance requirements at any time without prior notice. If the equity in your account decreases to less than the total maintenance requirement, you’ll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood may be forced to sell some or all of your securities, with or without your prior approval.

Robinhood charges a margin interest rate that varies depending on your settled margin balance and the upper bound of the Target Federal Funds Rate, which is set by the Federal Reserve and is subject to change without notice. The formulas used to calculate the margin interest rate are subject to change at Robinhood’s discretion.

For more information, review FINRA’s Investor Alert and our Customer Relationship Summary, Margin Disclosure Statement, and Margin Account Agreement. These disclosures contain important information on Robinhood’s UK products and services, conflicts of interests, lending policies, interest charges, and the risks associated with margin investing enabled accounts.

In relation to margin, Robinhood UK is acting as credit broker and not a lender. Margin is provided by Robinhood Securities, LLC. Robinhood UK and Robinhood Securities, LLC are part of the same group. Robinhood UK can only introduce customers for margin to Robinhood Securities, LLC. Margin is subject to Robinhood Securities, LLC's eligibility criteria and terms and conditions apply.