What Is Margin?
 
Why Use Margin?
What Securities Can I Use as Collateral for Margin Borrowing?
What Securities Are Not Eligible for Margin Borrowing?
How to Apply for Margin
Why Use Margin?
Margin borrowing allows you to:
  Purchase additional securities with non-retirement assets to respond to market changes and react quickly to new investment opportunities using leverage to enhance returns.
  Sell securities short, i.e., borrow securities to sell them immediately with the intention of buying them back at a lower price in the future. To sell securities short, you must have a margin account.
  Obtain short-term financing or the overdraft protection you may need to meet short-term business or personal needs. Margin is available when you write a check or make a Fidelity check card transaction that exceeds your Core account balance.
  Have a lower interest rate alternative for ready cash for any personal financial need without extensive additional paperwork or credit application fees.
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What Securities Can I Use as Collateral for Margin Borrowing?
Eligible stocks, bonds, and mutual funds that may be used as collateral include:
  Equities trading over $3 per share (special requirements exist for certain securities and certain accounts)
  Most mutual funds, if you've held them for at least 30 days
  Treasury, corporate, municipal and government agency bonds
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What Securities Are Not Eligible for Margin Borrowing?
Precious metals, money market funds, Certificates of Deposit, annuities, offshore mutual funds, options, and any securities in retirement or UGMA/UTMA accounts are not eligible for margin.
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How to Apply for Margin
If you already have a Fidelity Account with an Individual or Joint registration, you can log in and apply online.
If you prefer, you can download*, print, complete, and sign the Margin Application and Margin Agreement, then mail it back to Fidelity.
If you don't have a Fidelity account, you can open an account online now.
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Margin borrowing involves risk, and may not be suitable for everyone. However, depending on how margin is used and how you currently manage your debt, margin borrowing may provide you an additional lower interest, cost-effective credit-borrowing tool.
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