hi all, I'm transfering some money to Fidelity, and I want to buy a penny stock. Looks like they'll let me do this prior to the fund transfer settling but I see this warning
(005600) The security indicated in your buy order is not marginable and has a 100% margin requirement. It can be purchased in a margin account but the total amount of this trade will need to be covered by cash or non-margin buying power by settlement. If not covered by cash, your margin debit balance will be increased.
Can someone explain, does this just mean that for a day or two I'll be charged interest, and then when the cash transfer settles it will automatically move off of margin? Or, would I need to take some kind of action to accomplish this? thanks!
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