The total value of the order you want to place must not exceed the available balance on your cash account. You can see the amount of your balance by going to Cash.
If your available balance isn’t sufficient to place an order, this may be due to a variety of reasons:
- Open orders block funds in the amount of their expected execution value. So you may currently have open orders. To check, go to Wealth > scroll down to Orders & Insights > tap Orders.
- You may need to add funds to your account to cover a safety (or volatility) margin. Since a market order is executed at the next best price, this can happen due to rapid price changes at a higher execution price than indicated when the order was created. To prevent your account from sliding into the negative, a safety margin of approximately 5% of the order volume is required here. However, the safety margin has no effect on the actual execution price.
- You don’t have enough funds on your cash account to carry out the order. In this case, you can deposit money on your cash account or sell securities.