What Is Non Margin Buying Power -
: While it is used for "non-marginable" assets, using this balance in a margin account can still trigger a margin loan. This happens if you leverage the loan value of other holdings to buy these assets, resulting in margin interest charges.
: New stocks may be restricted for the first 30 days of trading.
These assets are restricted because they are often illiquid or highly volatile: : Generally stocks trading under $5 per share. what is non margin buying power
: Specifically used for securities with a 100% margin requirement , meaning you cannot borrow against them.
: Some highly volatile funds are excluded from margin borrowing. Difference from Other Balances : While it is used for "non-marginable" assets,
: The total amount available to buy marginable assets (like standard blue-chip stocks), which usually includes up to 2:1 leverage.
: Some brokerages, like Public , apply a maintenance buffer (e.g., 10%) to this balance to reduce the risk of a margin call. Common Non-Marginable Securities These assets are restricted because they are often
AI responses may include mistakes. For financial advice, consult a professional. Learn more Trading FAQs: Margin - Fidelity Investments