If you encounter Fidelity error 313011 “The estimated order value exceeds your margin buying power” while trying to execute a trade on Fidelity.com, it means the value of stocks exceed the available margin buying power in your account.
Someone asked:
I have a margin account with Fidelity but I can’t open this trade due to the error 313011: “The Estimated Order Value for this order exceeds your Margin Buying Power. You must edit this order or increase your buying power before you can place this order”.
This issue can arise primarily due to the margin requirements of specific stocks. Certain stocks have higher margin requirements than others, specifically volatile ones, with margin requirements that are well above the average margin required. Some stocks, such as GameStop (GME) or AMC Theaters (AMC) have higher margin requirements than blue chip stocks (such as Apple or Microsoft) due to the perceived risk being taken on by the brokerage. As a result, they have a 100% margin requirement.
A 100% margin requirement means margin for this security is not available, and you need to have the full value of the trade’s amount in your cash account, as no borrowing is allowed for such securities. This may be the case for the stock you’re attempting to trade using your Fidelity margin account. In addition to margin requirements, other reasons for why you may not be able to place a trade include:
- Market Orders with Price Fluctuations: If you’re placing a market order, the system might prevent the trade if there’s a risk that price fluctuations could push your account into a margin call. The next available price could be higher than expected, reducing your buying power.
- House & Regulatory Requirements: Margin requirements are influenced by regulations from the Federal Reserve, FINRA, and Fidelity’s own house rules.
These rules may increase margin requirements based on factors like liquidity or concentration risk. To resolve this issue, you can either reduce the size of your order or deposit more funds to increase your buying power.
It’s important to be cautious when placing trades with margin. Margin calls are real. Fidelity may liquidate your positions at a loss with one significant drop to cover your trades. Reference the “Margin Calculator” tool in Fidelity’s Active Trader Pro application (available for Windows and Mac OS) to estimate how a trade will affect your account.
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