You are correct. FINRA Rule 4210 defines the requirements for margin.
Robinhood's FAQ on the subject was ostensibly written by someone who doesn't understand that "margin" is a word with specific meaning in the context of a highly regulated brokerage business. It's an account where you take risk with only partial equity, with the institution putting up the balance.
From FINRA:
"The term 'margin' means the amount of equity to be maintained on a security position held or carried in an account."
Elsewhere on Robinhood's site, I was happy to find some acknowledgment of the regulatory requirements:
"To purchase a security on margin, we require that you have at least $2,000 or 100 percent of the security’s purchase price (whichever value is less) deposited into your account. This is called the "margin minimum." If you are designated a pattern day trader, you must have $25,000 in portfolio value (minus any cryptocurrency positions) before you continue day trading.
Note: If you are borrowing on margin and fall under $2k portfolio value, you are at risk of a margin call and potential liquidation"
People here are downvoting you because they don't know the rules and they believe Robinhood's website when it says that Robinhood Instant is margin.
Robinhood's FAQ on the subject was ostensibly written by someone who doesn't understand that "margin" is a word with specific meaning in the context of a highly regulated brokerage business. It's an account where you take risk with only partial equity, with the institution putting up the balance.
From FINRA:
"The term 'margin' means the amount of equity to be maintained on a security position held or carried in an account."
Elsewhere on Robinhood's site, I was happy to find some acknowledgment of the regulatory requirements:
"To purchase a security on margin, we require that you have at least $2,000 or 100 percent of the security’s purchase price (whichever value is less) deposited into your account. This is called the "margin minimum." If you are designated a pattern day trader, you must have $25,000 in portfolio value (minus any cryptocurrency positions) before you continue day trading.
Note: If you are borrowing on margin and fall under $2k portfolio value, you are at risk of a margin call and potential liquidation"
People here are downvoting you because they don't know the rules and they believe Robinhood's website when it says that Robinhood Instant is margin.