Buying Power — Stock

Buying power is a tool for . It can amplify your gains, but in a margin account, it can also amplify your losses beyond your initial investment. Always keep an eye on your "Maintenance Margin" to ensure your buying power doesn't suddenly evaporate during a market dip.

Your buying power isn't a static number. It changes based on: stock buying power

is essentially the total amount of money you have available to purchase securities. Think of it as your "spending limit" at the brokerage mall. Buying power is a tool for

When you sell a stock, the money doesn’t always become "buying power" instantly. Most trades take one business day to "settle" (T+1). If you buy more stock using "unsettled" funds and sell it too quickly, you could trigger a Good Faith Violation . 2. Margin Account Buying Power Your buying power isn't a static number

If you have $5,000 in your account, your buying power is $5,000.