How is one able to add diversity to one's Robinhood portfolio while utilizing near 100% of Gold (margin)?
I was told in my previous post, as well as reiterated by a Robinhood Rep, that when making a purchase, cash is used first and then margin.
Scenario: We have 5K cash and 5K margin and would like to buy stocks ABC (5K) and XYZ (5K), each of which has the lowest possible "initial requirement" of 50%.
When we purchase 5K of ABC, the purchase will consume our 5K cash and leave us with 5K margin (now useless to make purchase of XYZ, since 50% initial requirement).
How do we use 100% of margin if we want to hold 2 or more positions?
Maybe this scenario is a good reason to diversify brokers or manage a second Robinhood account for my wife?
From Robinhood Rep:
In your scenario, yes you would be correct as you would have $5k in Gold left with no cash so you would be unable to use 100% of Gold to purchase any stock.