Autopilot and margin: what happens if your brokerage account has margin enabled, and how to make sure you're only investing cash

I'm Chris, co-founder of Autopilot. This is the one page in this whole series I'd ask you to read even if you skip the rest, because it's the one place where a setting you may not remember turning on can make you owe money. If your brokerage account has margin enabled, our orders can use it. Here's what that means, how to check, and how to make sure the only money that follows a Portfolio is money you actually have.

One thing first, because we're an SEC-registered investment adviser and I have to say it. Autopilot is the app. The actual investment advice comes from Autopilot Advisers, LLC. If you want the full legal version of anything in here, it's on our disclaimer page.

1) What margin is, in one paragraph

A cash account can only buy with the cash in it. A margin account lets you borrow from your brokerage against the securities you hold, so your buying power is larger than your cash. The borrowed part is a loan: it carries interest set by your brokerage, and if the value of your holdings falls far enough, the brokerage can require more money or sell positions to cover it, on its terms and its timeline. Whether your account is a cash account or a margin account is a brokerage setting, chosen when you opened it or changed since.

2) What Autopilot does with it

If your brokerage account allows margin, Autopilot Advisers may send orders that use margin buying power, based on the allocation you set and your account's margin settings. You still give limited authority to send orders to that account; when the Portfolio changes, we send them and your broker fills them. We don't turn margin on, and we don't decide how much your brokerage will lend; those are your account's settings. But we also don't refuse to use it. The instruction we act on is your allocation, and if your allocation is larger than your settled cash and the account has margin, the difference can be filled on margin. That is the whole risk on this page, stated plainly.

3) How to make sure you're only investing cash

Two controls, and you should use both. First, at your brokerage: check whether the account is a margin account, and if you don't want to borrow, either use a cash account for following Portfolios or ask your brokerage how to keep margin from being used; the mechanics are theirs, and they can tell you. Second, in the app: keep your total allocation, across every Portfolio you follow, at or below the settled cash you actually have in the account. If your allocations never exceed your cash, there's nothing for margin to fill. Following more than one Portfolio makes the total the number to watch, which is why I wrote Following more than one Portfolio: how allocations work, what buying power limits, and why one Pilot subscription covers all of that Pilot's Portfolios.

4) Can following a Portfolio put you in debt

If the account has margin and your allocation exceeds your cash, yes, in the ordinary sense that part of your holdings would be bought with borrowed money, with interest and the possibility of a margin call, all under your brokerage's rules. If the account is a cash account, or your allocations stay within your cash, no; orders that can't be funded simply wait for buying power. So the answer is entirely determined by two settings you control, and neither of them is a Pilot's decision or ours.

5) What to check, in order

Open your brokerage account and confirm whether it's cash or margin. Add up your Autopilot allocations. Compare the total to your settled cash. If the total is higher and the account is margin, lower the allocations or add cash. Then read the rest of what can happen in the account, which is deliberately short: long stocks and ETFs only, within your allocation, and never options, crypto, or shorts, in What Autopilot will and won't trade in your account: stocks and ETFs, never options, crypto, or shorts, and what happens to the positions you already own. And when the orders go and why they sometimes wait for buying power is in When Autopilot actually trades: market hours, the first fifteen minutes, and why an order can wait.

Frequently asked questions

Does Autopilot trade on margin?

It can, if your brokerage account has margin enabled. Orders are based on the allocation you set and your account's margin settings, so if your allocation exceeds your settled cash in a margin account, the difference may be filled with margin buying power. Autopilot doesn't turn margin on; your brokerage settings do. In a cash account, or with allocations kept within your cash, no margin is used.

How do I make sure Autopilot only uses cash in my account?

Use both controls. At your brokerage, confirm whether the account is a cash or margin account, and if you don't want to borrow, use a cash account or ask your brokerage how to prevent margin use. In the app, keep your total allocation across all Portfolios at or below the settled cash in the account, so there is nothing for margin to fill.

What is margin buying power and why does it matter for a connected app?

Margin buying power is the amount your brokerage will let you spend including money borrowed against your holdings, so it's larger than your cash. It matters because a connected app acting on an allocation you set may use that larger number if your account allows it. Autopilot's orders can use margin buying power when the account has margin and the allocation exceeds cash, which is why your total allocation should match what you actually have.

Can following a Portfolio put me in debt?

Only if your brokerage account has margin enabled and your allocation exceeds your settled cash, in which case part of the holdings can be bought with borrowed money, carrying interest and the possibility of a margin call under your brokerage's terms. With a cash account, or allocations kept within your cash, orders that can't be funded wait for buying power instead. Both settings are yours to control.

TLDR

If your account has margin, our orders can use it, because we act on your allocation and your brokerage's settings. Check whether the account is cash or margin, add up every allocation you've set, and keep the total at or below your settled cash. Do that and margin never enters the picture; skip it and you can end up borrowing without meaning to.

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Since Autopilot Advisers is an SEC-registered investment adviser, we have to put disclaimers on stuff like this. They're below, and the full version is on our disclaimer page.

Disclosures

© Autopilot Holdings Corporation 2026 — All rights reserved. “Autopilot” refers to Autopilot Holdings Corporation and its wholly-owned, and separately managed subsidiaries, including Autopilot Advisers, LLC, an SEC-registered investment adviser. All investing is subject to investment risks, including possible loss of the principal invested, and past performance is not indicative of future results. View our Customer Relationship Summary and other important information at joinautopilot.com/disclaimer.

This information is provided by Autopilot for educational and illustrative purposes only and is not a recommendation, an offer to sell or the solicitation to buy any security. Autopilot relies on information from various sources believed to be reliable, including information from Clients, Pilots and other third parties, but cannot guarantee the accuracy or completeness of that information. Autopilot does not provide tax or legal advice and you are encouraged to consult with professionals before making investment decisions.

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Autopilot Advisers, LLC is an SEC-registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. Additional information about Autopilot is available in our Form ADV Part 2A, available at adviserinfo.sec.gov or joinautopilot.com/adv.

Autopilot provides limited investment advisory services focused on Portfolio selection and suitability assessment. Our services are not intended to replace comprehensive financial planning. We recommend consulting with a qualified financial advisor regarding your complete financial situation.

This content is provided for educational and informational purposes only. It does not constitute investment, legal, or tax advice and should not be relied upon as the basis for any investment decision. You should consult with qualified professionals regarding your specific circumstances.

Autopilot does not provide tax, legal, or accounting advice. You should consult with qualified tax and legal professionals regarding your specific circumstances.

Autopilot does not hold client assets. All investments are held at the brokerage firm you select and connect to Autopilot. Your brokerage firm is responsible for trade execution, custody, and reporting. Autopilot is not responsible for your broker-dealer’s services, fees, or execution quality.

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Statements about margin follow Autopilot's public website FAQ and help center as of the publish date: orders may use margin buying power when a brokerage account has margin enabled, based on the allocation and the account's margin settings. Margin terms, interest, and margin-call rules are set by each brokerage. This is general information about how the account can behave, not advice about whether to use margin.