Marginable securities refer to stocks, bonds, futures, or other securities capable of being traded on margin. Securities traded on margin, paid for by a loan, are facilitated through a brokerage or other financial institution that lends the money for these trades.

How do you know if a stock is marginable?

The way you can tell whether a stock is marginable or not is on Lightspeed, looking in the top corner, just like that. Other platforms are different and may have that notice in a different place, or may not have that notice at all.

What types of securities are not marginable?

Non-marginable securities include recent IPOs, penny stocks, and over-the-counter bulletin board stocks. The downside of marginable securities is that they can lead to margin calls, which in turn cause the liquidation of securities and financial loss.