Non-Marginable Securities

Non-marginable securities are investments that cannot be used as collateral for a margin loan. This means that investors cannot borrow money from their broker to buy these securities.

There are a few reasons why a security may be non-marginable. One reason is that the security is considered to be too risky. Another reason is that the security is not liquid enough, meaning that it cannot be easily sold in the market.

Some common examples of non-marginable securities include:

• Stocks of small companies
• Stocks of companies in emerging markets
• Options
• Futures contracts
• Commodities

It is important to note that the list of non-marginable securities is not fixed. It can change from time to time, as new securities are added or removed.

Investors should be aware of the margin requirements for any security they are considering buying. If a security is not marginable, it may not be the best investment for an investor who is looking to borrow money to buy stocks.