What is Buying Power?

Buying Power (BP) is the cash balance, available margin, and collaterals you have available in your brokerage account to purchase additional securities or open new positions in a trading context.

Cash BP: The amount of cash available in your trading account that can be used to open new positions.

Max BP: The maximum buying power you can use to open a new position. This consists of your available cash, margins (if applicable), and collateral value.

Short Selling BP: The amount of margin available that can be used to initiate a Short Selling position. Only available with margin trading accounts

Options BP: The amount of cash or margin available that can be used to initiate an Options position.