Can I increase my available investable margin?
The amount of margin available to you goes up when you add more money to your brokerage account or if the marginable securities in your account appreciate in value.
The level of diversification and the volatility of the positions in your account may also impact your available margin. However, if you have a borrowing limit set on your brokerage account, your available margin won't increase above that limit.
For example, if you have $2,000 cash in your brokerage account, you can invest up to $2,000 with margin. If you increase your cash account value to $3,000 by depositing $1,000, your available margin will increase to $3,000. However, if you set a $2,000 borrowing limit, your available margin won't go up regardless of how much you deposit.
All investments involve risk including loss of principal. The example is hypothetical and doesn’t reflect actual or anticipated results. Content is provided for informational purposes only that doesn’t constitute investment advice and isn’t a recommendation for any security, account type or feature, or trading strategy. Past performance doesn’t guarantee future results.
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. Before using margin, customers must determine whether this type of trading strategy is right for them given their specific investment objectives, experience, risk tolerance, and financial situation.
Robinhood can change its maintenance requirement ratios 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 close positions to reduce your margin loan. If you fail to meet your minimums, Robinhood may sell some or all of your securities, with or without your prior approval.
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's eligibility criteria and terms and conditions apply.