Is Non Margin Buying Power — What
These assets are restricted because they are often illiquid or highly volatile: : Generally stocks trading under $5 per share.
: 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. what is non margin buying power
Non-margin buying power is the maximum dollar amount available in your brokerage account to purchase , which are assets that require 100% of their purchase price to be funded upfront. Unlike standard "buying power," which often includes leverage to buy more than you have in cash, this balance identifies what you can spend on high-risk or volatile assets that cannot be used as collateral. Key Characteristics 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 Non-margin buying power is the maximum dollar amount
: Derivatives often require full cash funding due to their complexity.
: Some highly volatile funds are excluded from margin borrowing. Difference from Other Balances
: This balance typically consists of your core cash plus any margin surplus from marginable securities you already own.