Margin maintenance (sometimes referred to as maintenance margin) is the minimum portfolio value that you need in your account to prevent a margin call. A margin call is a request to increase the amount of equity in your account. You can do this by depositing cash or by liquidating existing positions to generate cash and reduce the margin loan.

In line with US regulations, investors must maintain at least 25% equity in the account, which is referred to as the margin maintenance. This is calculated by multiplying each security position in your portfolio with the ‘margin ratio’ for that security and then adding up the total. That total is the margin maintenance that you’re required to hold in your account as a minimum. Review these for example calculations.

You can find the margin ratio for each security in its stock detail page.

You’ll be notified if your portfolio value drops towards the margin maintenance requirement (within 5%). You will receive a margin call (in-app and push notifications and an email) when the portfolio value drops below the margin maintenance requirement (or under the regulatory minimum of $2,000).

To view your margin maintenance:

1. Select Account (person icon)
2. On the app, skip to the next step. On the web, select Investing
3. Scroll down or select Margin Investing for your current margin maintenance requirement

To view your margin details in real time, go here.

Your margin maintenance is based on a model that considers certain factors, such as volatility and market liquidity. For example, stocks that are known to be more volatile typically have higher margin ratios to ensure you have enough portfolio value to cover the position if it quickly decreases in value.

If your portfolio value goes lower than the required margin maintenance value, you may get a margin call. You’ll need to bring your portfolio value back up to or above your minimum margin maintenance requirement. If not, you risk forced liquidation of your positions to bring your portfolio value back above your margin maintenance requirement. Review How do I avoid a margin call for more details.

For example, let’s say you have $10,000 worth of stocks, of which $3,000 was paid for with a margin loan. The portfolio value needs to remain at or above $5,000 to meet the margin maintenance requirement. So the account has a $2,000 surplus ($7,000 - $5,000).

If all the stock values decrease by 50% overnight, your portfolio value changes to:

If your portfolio decreases by 50% with a $500 margin maintenance deficit ($2,000 - $2,500), you would need to deposit at least $500 or sell securities to reduce your margin loan.

If you sell Stock B for $1,000, that would clear the deficit:

With this example, you would have a $500 surplus. Note that if the portfolio value drops below $2,000, you’ll be required to increase your portfolio back to the regulatory minimum of $2,000, or reduce your margin loan to $0.

You can compare your stock value in your portfolio (in Investing) to the margin maintenance value (in Margin Investing) to determine if you're approaching a margin call.

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.