Cash Account Balances and Descriptions - Fidelity Investments
: Assets bought with this balance are considered non-marginable, meaning the broker requires you to put up 100% of the purchase price upfront. non margin buying power
These assets generally carry higher volatility or lower liquidity, leading regulators and brokers to prohibit borrowing against them: Core Components : Many brokers, such as Fidelity
: Your settled and available cash balance, net of any pending orders. Core Components : Many brokers
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
: 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