Non-Marginable Securities

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Definition: Non-Marginable Securities

Securities that cannot be purchased on margin by brokers are called non-marginable securities. Some securities such as bulletin board stocks, penny stocks are non-marginable.

These securities are funded completely by the investor cash. Stocks with low liquidity and marcap are non marginable. It is all about risk mitigation. Penny stocks would have low market capitalization and low returns and may be very risky to invest in.


Brokers can check for non marginable securities online before placing orders. The lists are available online as well as on request.


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