Robinhood Margin Buying Power: How It Works and When to Use It

When I first saw the “margin buying power” figure in my Robinhood account, it took me a minute to fully understand what I was looking at and how it related to the risk I was taking on. The interface makes it easy to use but doesn’t go deep on the mechanics. That gap between “easy to access” and “fully understood” is exactly where people get into trouble with margin.

This guide covers exactly how Robinhood margin buying power works: what the number means, how it’s calculated, what it costs, and the specific risks you need to understand before using it.

What Is Margin Buying Power on Robinhood?

Robinhood shows two types of buying power:

• Cash buying power: The uninvested cash available in your account. This is money you actually have. No borrowing involved
• Margin buying power: The total amount you can invest, including borrowed funds. This is your cash plus the amount Robinhood will lend you based on your account’s collateral

When your margin buying power is higher than your cash buying power, the difference is money you’d be borrowing from Robinhood at the current margin interest rate.

Example: Your account holds $10,000 in stocks and $2,000 in cash. Your cash buying power is $2,000. Your margin buying power might be $12,000 ($2,000 cash plus $10,000 borrowable against your stock holdings).

Robinhood Gold: Required for Margin

Standard Robinhood accounts are cash accounts. To access margin, you need to upgrade to Robinhood Gold at $5/month ($50/year if billed annually). Gold includes:

• Access to margin (borrowing against your portfolio)
• $1,000 in margin at no interest (anything above $1,000 is charged the margin rate)
• Larger instant deposit limit
• Access to Morningstar research reports
• A competitive APY on uninvested cash (check Robinhood’s current rate)
• 3% IRA match on contributions

The $1,000 interest-free margin is a meaningful benefit for smaller accounts using moderate leverage. If you borrow $800 to increase a position, you’re not paying interest on it. Once you borrow above $1,000, the standard margin rate applies to the excess.

Robinhood Margin Interest Rate

Robinhood charges a variable margin rate on borrowed amounts above $1,000. The rate adjusts with the broader interest rate environment. At the time of writing, the rate is set relative to the federal funds rate. Check the Robinhood app or website for the current rate, as it changes with Fed policy.

The interest calculation is daily: the outstanding margin balance at the end of each day accrues interest at the annualized rate divided by 365. If you hold a margin position for two weeks and then close it, you pay two weeks’ worth of interest on the borrowed amount.

Example at a 9% annual margin rate on a $5,000 borrowed balance:

• Daily interest: $5,000 x 0.09 / 365 = $1.23/day
• 30-day cost: approximately $36.99

That’s $37/month in interest on top of your $5 Gold subscription, just for holding the $5,000 borrowed position. Include this in your return calculation before deciding if a margin-funded position makes financial sense.

How Robinhood Calculates Your Margin Buying Power

Your margin buying power depends on:

1. Your account equity: The current market value of all your positions plus any cash, minus any existing margin balance
2. The marginability of your holdings: Not all securities can be used as collateral. Most major stocks and ETFs are marginable. Fractional shares, OTC stocks, some ETFs, and crypto are not marginable
3. The margin requirement for each security: Standard stocks require 25-50% margin. Some volatile or low-priced securities have higher requirements
4. Regulatory minimums: FINRA requires a $2,000 minimum account balance to use margin

Robinhood displays your current margin buying power in the account screen. This number updates as your positions change in value throughout the trading day.

Maintenance Margin and When Margin Calls Happen

Using margin requires maintaining a minimum equity ratio. For most standard equities, that’s 25% of the total position value. If your equity falls below this threshold, Robinhood issues a margin call.

Say you use $10,000 of your own money plus $10,000 borrowed to buy $20,000 of a stock. Your equity is $10,000, and the maintenance requirement is 25% of $20,000 = $5,000. The stock can fall from $20,000 to $6,667 in value before you approach the margin call threshold (when your $10,000 loan would leave only $6,667 – $10,000 = -$3,333… the actual trigger point is when equity hits 25%).

Working through the exact threshold: with $10,000 borrowed, your equity hits 25% of total position value when the position value is $13,333 ($10,000 loan / 0.75 = $13,333). A 33% decline from $20,000 triggers the maintenance call.

Robinhood can respond to margin calls quickly. During fast-moving markets, they may begin liquidating positions before you have time to deposit funds. For more detail on what happens and how to respond, see my full guide: Margin Calls Explained

What Happens to Margin Buying Power When Positions Drop

If your stock positions decline in value, your equity ratio changes and your available margin buying power decreases. This can create a situation where:

1. You’re using all available margin
2. Position values drop
3. Your margin buying power goes negative (you’re below the minimum equity requirement)
4. Robinhood issues a margin call notice

To restore margin buying power: deposit cash, transfer marginable securities, or close positions to reduce the outstanding loan balance.

Margin Buying Power vs. Options Buying Power

These are separate figures. Options buying power reflects what you can use for options trades. Covered calls don’t require additional buying power since you already own the shares. Buying options (long calls or puts) reduces your options buying power, not your margin buying power, in most cases.

If you’re running a combined strategy of margin positions plus options, monitor both figures separately. Running both simultaneously increases overall risk exposure.

For options strategies: Covered Call Strategy Guide

Crypto on Robinhood: Not Marginable

A common point of confusion: crypto held on Robinhood does not count toward your marginable equity. If you have $5,000 in stocks and $5,000 in crypto on Robinhood, your marginal buying power calculation only uses the $5,000 in stocks.

Crypto positions also can’t be used to satisfy a margin call. If you receive a margin call and your only liquid asset is your Robinhood crypto position, you’ll need to sell the crypto (generating a taxable event) to meet the maintenance requirement.

When Using Robinhood Margin Makes Sense

Margin amplifies both gains and losses. It makes sense when:

• You have high conviction in a specific position and want to increase exposure temporarily
• You need short-term liquidity (similar to a bridge loan) without selling positions that would trigger taxes
• You want to use the interest-free $1,000 for minor position rounding without paying interest
• The expected return on the position significantly exceeds the margin interest cost

It doesn’t make sense when:

• You’re buying volatile assets at maximum leverage and don’t have cash reserves to cover a margin call
• The interest rate on the margin loan exceeds your expected position return
• You’re using it to chase a recent run-up, expecting momentum to continue

Frequently Asked Questions

What is margin buying power on Robinhood?

Margin buying power is the total amount you can invest using both your own money and funds borrowed from Robinhood. The difference between margin buying power and cash buying power is the amount you’d be borrowing. You need Robinhood Gold ($5/month) to access margin.

How much does Robinhood charge for margin?

Robinhood Gold includes $1,000 in margin at no interest. Amounts above $1,000 are charged a variable margin interest rate (check the current rate in the app, as it adjusts with Fed policy). The Gold subscription itself costs $5/month.

Can Robinhood liquidate my account without warning?

Yes. If your account falls below the minimum maintenance margin requirement, Robinhood can liquidate positions to bring the account into compliance without waiting for you to respond. They typically issue a margin call notification first, but in extreme market conditions, the timeline can be very short. Never rely on receiving advance notice before liquidation.

Does crypto count toward margin buying power on Robinhood?

No. Crypto positions are not marginable and don’t contribute to your collateral calculation. Only traditional securities (stocks and ETFs that Robinhood has approved as marginable) count toward your margin buying power.

What is the minimum account size to use margin on Robinhood?

FINRA requires a minimum $2,000 account balance to access margin. Robinhood may have its own minimums on top of this. You also need to be a Robinhood Gold subscriber.

How do I increase my margin buying power on Robinhood?

Deposit more cash or transfer marginable securities into the account. As your equity grows, your available margin buying power increases proportionally. You cannot “apply” for a higher limit beyond what the formula calculates based on your equity and the marginability of your holdings.

Robinhood Margin vs. Portfolio Margin: What’s Available and Who Qualifies

Robinhood offers two margin tiers: standard Reg T margin (2:1 leverage on marginable securities) and Gold margin, which is the subscription service with lower margin rates. Portfolio margin — which allows higher leverage based on actual portfolio risk rather than fixed Reg T ratios — is not available on Robinhood as of 2026. Portfolio margin is available at Interactive Brokers, TD Ameritrade, and some other platforms for accounts with $125,000+ in equity.

For most retail investors, Robinhood’s standard margin is the relevant product. The mechanics: Robinhood Gold subscribers ($5/month) get access to margin lending at 5.75% annual interest (rate as of 2026 — check current rate before using). The first $1,000 of margin is included with the Gold subscription; anything above that accrues at the margin rate.

Interest accrues daily and bills monthly. A $10,000 margin position at 5.75% costs approximately $576/year or $48/month. This cost is straightforward — it reduces the effective return on whatever you’re buying on margin. For margin to add value, the asset needs to appreciate (or generate yield) by more than 5.75% plus any other costs.

The practical limit I use: keep margin below 20% of portfolio value, maintain enough cash to cover a 30% drawdown without hitting a margin call, and only use margin on positions I’d hold at full size without leverage. Margin accelerates outcomes in both directions — it’s not free money, it’s borrowed money with a specific cost that needs to be built into return expectations.

Robinhood’s margin call process: if your equity falls below the maintenance requirement (typically 30% of position value for stocks, higher for volatile assets), you’ll receive a margin call notification. You then have 2-5 days to deposit funds or close positions to meet the requirement. During extreme market conditions, that window can be shorter.

For context on how Robinhood’s fee structure compares on options strategies, see the Covered Call Strategy Guide.

Bottom Line

Robinhood margin is accessible and relatively straightforward, but “easy to access” doesn’t mean “easy to manage safely.” The key things to track: your current margin balance, the equity ratio, and whether a significant position decline would trigger a margin call.

For most investors, keeping margin usage below 50% of maximum available is a reasonable buffer. The $1,000 interest-free margin included with Gold is the most conservative use case and carries minimal risk for stable equity positions.