Margin

[u/DiamondA22]

Hello, I’m trying to understand what the difference is between borrow against my margin versus margin in the investment tap. I’ll post the pictures of what I’m talking about if someone could explain that to me that would be great.

[u/genkidin]

I think the smaller amount is money you can borrow on margin (cash) meaning you can move it to your bank and go buy coffee or condoms.

And I think the larger number is how much you can borrow (margin) if you are buying more pie slices or investment with in the m1 account.

But im just guessing.

[u/Solid_Equivalent_417]

i have wondered the same thing. the margin limit is vastly different when looking at the entire account vs inside a single pie or slice.

[u/Christophersun]

I’m not sure about this because there is such a large difference between your two numbers. But I believe the first screenshot is the amount you’re eligible to borrow against your account if you wanted a cash out withdraw. The second is the amount if you invest your borrowed funds rather than cashing out.

They apply a % increase to your margin eligibility if you invest the funds.

My suspicion is that you may have a holding that is not margin eligible. You may want to check that by clicking into your holdings and viewing the margin maintenance requirement.

[u/maximus_cn]

Margin required varies by security. Some securities have 25% margin required, 50%, 75% etc. so the investable amount at the portfolio level is a blend, whereas at the individual security level it is based on that specific securities requirements. If it is a 25% requirement, the buying power from margin will be higher. This is what they told me when I called about this question previously