What’s margin maintenance? | Robinhood

What’s margin maintenance?

Margin maintenance is the minimum portfolio value (excluding any crypto positions) that you need to prevent a margin call.

Keep in mind

You always need to keep your portfolio above $2,000 and your margin maintenance requirement to avoid these types of margin calls.

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, click 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 maintenance requirements to ensure you have enough portfolio value to cover the position if it quickly decreases in value.

If your portfolio value (excluding any crypto positions) drops lower than your margin maintenance requirement, you may get a margin call. You’ll need to bring your portfolio value back up to your minimum maintenance requirement, or you risk forced liquidation of your positions to bring your portfolio value (excluding any crypto positions) back above your margin maintenance requirement. Review How do I avoid a margin call for more details.

Keep in mind

Robinhood can adjust margin maintenance requirements at any time and sell out whichever positions are deemed fit to satisfy your margin call, without notifying you first or gaining your authorization.

Note

Crypto positions can't be traded on margin. They’re not accounted for in your portfolio value because they’re not securities. They’re custodied with our affiliate, Robinhood Crypto, LLC.

Maintenance examples

Your maintenance requirement is based on the market value and maintenance ratio of each position in your portfolio.

If you only own 1 stock, the calculation is easy. For example, let's say you have:

$10,000 of XYZ stock with a maintenance ratio of 40%.

Your maintenance requirement would be calculated by multiplying the market value of your XYZ position ($10,000) and the maintenance ratio (40%), resulting in a requirement of $4,000 of equity. Any additional equity could then be available as buying power in your margin account.

Keep in mind

As the market value changes for a position, your requirement will change as well.

With multiple positions, calculating your overall maintenance requires additional steps. Let’s say you have:

  • $10,000 of XYZ stock with a maintenance ratio of 40%
  • $20,000 of ABC stock with a maintenance ratio of 100%
  • $10,000 of MEOW stock with a maintenance ratio of 25%

Your maintenance requirement is calculated by adding the requirement for each position:

($10,000 * 0.4) + ($20,000 * 1) + ($10,000 * 0.25) = $26,500 (total maintenance requirement)

For this example, to meet your maintenance requirement and avoid a margin maintenance call, you’d need $26,500 of equity.

Also, because the ABC position has a maintenance ratio of 100%, it is considered non-marginable and requires 100% in equity to support it. Similarly, long options also have a 100% maintenance requirement.

Disclosures

All investments involve risk including loss of principal. No investments are FDIC insured. All examples are hypothetical and don’t reflect actual or anticipated results. This 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 Financial can change its maintenance margin requirements at any time without prior notice. If your portfolio value falls below the minimum maintenance requirements (varies according to the security), you’ll have to deposit additional cash or acceptable collateral. If you fail to meet your minimums, Robinhood Financial may be forced to sell some or all of your securities, with or without your prior approval.

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

Crypto trading and custodial services are offered through an account with Robinhood Crypto. Robinhood Crypto isn’t a member of SIPC or FINRA. Robinhood Crypto and Robinhood Financial are separate but affiliated entities. Crypto positions aren't securities and aren't FDIC insured or SIPC protected. For more information, review the Robinhood Crypto Risk Disclosure.

Robinhood Financial LLC (member SIPC) is a registered broker-dealer. Robinhood Securities, LLC (member SIPC) is a registered broker-dealer and provides brokerage clearing services. Robinhood Crypto, LLC provides crypto trading. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’), trading as HOOD on Nasdaq.

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Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker-dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Review a list of RHC licenses for more information.The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Review a list of our licenses for more information. Credit card products are offered by Robinhood Credit, Inc. ("RCT") (NMLS ID: 1781911 and issued by Coastal Community Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

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RHF, RHY, RHC, RCT, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC isn’t a member of FINRA and accounts are not FDIC insured or protected by SIPC.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker-dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Review a list of RHC licenses for more information.The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Review a list of our licenses for more information. Credit card products are offered by Robinhood Credit, Inc. ("RCT") (NMLS ID: 1781911 and issued by Coastal Community Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

RHF, RHY, RHC, RCT, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC isn’t a member of FINRA and accounts are not FDIC insured or protected by SIPC.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial's Fee Schedule to learn more.

Robinhood, 85 Willow Road, Menlo Park, CA 94025.© 2024 Robinhood. All rights reserved.