Can an ATM withdrawal borrow from margin?
Here’s a summary of the main problem and solutions discussed in the conversation:
- Main Problem: The user, PleasantHistorian, is unsure whether withdrawing $1,000 from a foreign ATM would draw from their margin allowance when they only have $500 in settled cash.
- Solution 1: FidelityLinsey explained that in a margin-enabled account, withdrawals first come from the core cash position, then from money market positions, and finally from margin if necessary.
- Solution 2: FidelityLinsey confirmed that the user can withdraw an amount up to their “Cash + borrowing on margin” balance, indicating they could withdraw more than the available cash due to their margin availability.
Here’s the full thread