Why can’t I use all of my buying power?
The initial requirement of a security is the minimum amount you must have to cover the trade before investing on margin, and it ranges from 50–100% depending on the security.
When trading on margin, your available buying power will be the maximum amount you’re able to spend on a fully marginable security. If an individual security has an initial requirement that's higher than 50% (the minimum initial requirement per regulations), your available buying power for that security will differ from your full buying power—it will update to reflect the security's specific initial requirement when you go through the process to make a trade.
To view the specific requirement ratios for a given security, go to the Margin Requirements section of the security’s detail page.
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. Content is provided for informational purposes only; it 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 their 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.
The margin interest rate charged by Robinhood Financial is 8% as of July 27, 2023. The rate might change at any time without notice and at Robinhood Financial’s discretion.
For more information, review FINRA’s Investor Alert and Robinhood Financial’s Customer Relationship Summary, Margin Disclosure Statement, and Margin 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. Cryptocurrencies aren't securities and your crypto isn'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), provides brokerage clearing services. Robinhood Crypto, LLC provides crypto trading. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’), trading as HOOD on Nasdaq.