Correct. On Etrade it will only let a trade go thru on a Penny stock up to the available case balance in your account. If you go to the order screen as though you wanted to place a trade, at the top edge there is a small + or - icon. Click on that and your available balances will show up for both marginable securities and non marginable securities. If you were to put an order thru on a Penny stock and it was for more than your cash balance, the next screen (review order screen) would have a banner at the top stating you do not have enough funds for the order.
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