Your available buying power for a security can differ from your full buying power, depending on the security, how concentrated your portfolio is in that security, and if you are buying or shorting the security.

When you buy on margin, you’re borrowing money to invest. 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.

Your margin account must meet both of the following requirements:

• Initial requirement: The initial ownership that’s required to open a new position for a security on margin. Frequently exceeding this requirement can be used as a credit balance to influence buying power.

• Maintenance requirement: The minimum amount of equity you must maintain in your account after opening a position. If the value of your holdings decreases to less than your total maintenance requirement, you’ll need to increase your portfolio value by selling some of your securities or deposit funds to more than what’s required.

Market appreciation does not always increase your buying power immediately. Your buying power is influenced by changes in your account’s equity over time in relation to the margin required to open positions. Your buying power does not automatically change when the market appreciates.

However, sustained market gains may help you meet the initial requirements for trades, which may eventually lead to an increase in your buying power over time.

Margin borrowing increases your level of market risk, as a result it has the potential to magnify both your gains and losses. Before using margin, customers must determine whether this type of strategy is right for them given their investment objectives and risk tolerance. Regardless of the underlying value of the securities you purchased, you must repay your margin loan. Robinhood Financial can change its maintenance margin 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 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, review Robinhood Financial’s Margin Disclosure Statement, Margin Agreement and FINRA Investor Information.