A margin maintenance call occurs when your portfolio value drops lower than your margin maintenance requirement.

Margin maintenance calls can happen for a variety of reasons, including a decline in the value of your holdings. If you get a margin maintenance call, you need to bring your portfolio value to meet or exceed your minimum margin maintenance requirement. Otherwise, you risk Robinhood selling shares to increase your portfolio value to meet your margin maintenance requirement.

You’ll be notified or get a margin call (notification and an email) if your portfolio value drops below the margin maintenance requirement (or is less than the regulatory minimum of $2,000).

Regardless of the underlying value of the securities you purchased, you are obligated to eventually repay your margin loan. Robinhood can change their margin ratios at any time without prior notice.

If the equity in your account falls below the minimum margin maintenance requirement, you will have to deposit additional cash or sell some or all of your securities to reduce the margin loan. If you fail to meet your minimums, Robinhood may be forced to sell some or all of your securities, without your prior approval.

You can do the following to avoid a margin call:

• Compare your stock value in your portfolio (Account (person icon) → Investing) to the margin maintenance value (Margin Investing) to determine if you're approaching a margin call.
• Look out for updates from us when your portfolio value is getting close to your brokerage account’s margin maintenance requirement.
• If you elect to deposit funds after getting a margin call, you’re prompted with an optional deposit amount that will help keep your portfolio value higher than your margin maintenance. However, depositing this amount doesn’t guarantee that you won’t get a margin call (for example, the value of your stocks may continue to go down while you make a deposit). Any prefilled or optional deposit amount is provided solely for your reference, is subject to change, and isn’t a recommendation. You can always enter a different deposit amount or sell stocks to help keep your portfolio value higher than your margin maintenance.

You can do the following to resolve a margin call:

• Deposit additional funds to increase your portfolio value above the margin maintenance requirement.
• Sell some of your securities or close some positions to reduce your margin loan and your margin maintenance requirement.

All investments involve risk including loss of principal. All examples are hypothetical and don’t reflect actual or anticipated results. Content is provided for informational purposes only, 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 involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. 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.

Regardless of the underlying value of the securities you purchased, you must repay your margin debt. Robinhood can change their margin maintenance requirements at any time without prior notice. If the equity in your account falls below the minimum maintenance requirements (varies according to the security), you’ll have to deposit additional cash or sell securities to reduce your margin loan. 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's eligibility criteria and terms and conditions apply.