While it sounds like a simple "cash balance," it is actually a dynamic calculation based on two main factors:
: 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
: 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,"
: Your settled and available cash balance, net of any pending orders. Key Characteristics : Your settled and available cash
: 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.
Cash Account Balances and Descriptions - Fidelity Investments