These assets generally carry higher volatility or lower liquidity, leading regulators and brokers to prohibit borrowing against them:
Cash Account Balances and Descriptions - Fidelity Investments non margin buying power
: Many brokers, such as Fidelity Investments and Public , include a "maintenance buffer" (often around 10%) in this calculation to reduce the risk of an immediate margin call if the market fluctuates. Common Non-Marginable Securities These assets generally carry higher volatility or lower
: Assets bought with this balance are considered non-marginable, meaning the broker requires you to put up 100% of the purchase price upfront. For instance, if you own $100 of a
: In a margin account, you can leverage the value of marginable securities you already own to buy non-marginable ones. For instance, if you own $100 of a 50% marginable stock, you may have an additional $50 in non-margin buying power to use for other trades. Key Characteristics
: Using this balance can still create a margin loan. If you spend beyond your available cash by leveraging existing holdings, you will be charged margin interest on the borrowed amount.
represents the total capital available in a brokerage account to purchase "non-marginable" securities—assets that cannot be used as collateral and must be paid for in full. Core Components