Why can’t I use all of my buying power?
Your available buying power for a security can differ from your full buying power, depending on the security you are trading and how concentrated your portfolio is in that security.
The initial requirement for a marginable security is the minimum amount you must have to cover the trade before investing on margin, which is generally 50%.
Keep in mind, certain securities, including those in which you have a concentrated position or that are more volatile, may require a minimum amount that is more than 50% to cover the trade.
Your available buying power for these securities is reflected on the security’s detail page and during the process of making the trade.
If the initial margin requirement is 50% for $10,000 of stock that you want to buy, then you’d need to either deposit or confirm you have $5,000 (50% of $10,000) in your account before you can make the trade.
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.