Cash Account Balances and Descriptions - Fidelity Investments
: 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. non margin buying power
: Assets bought with this balance are considered non-marginable, meaning the broker requires you to put up 100% of the purchase price upfront. These assets generally carry higher volatility or lower
These assets generally carry higher volatility or lower liquidity, leading regulators and brokers to prohibit borrowing against them: Core Components
: 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
While it sounds like a simple "cash balance," it is actually a dynamic calculation based on two main factors:
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