Buying Power
Definition of 'Buying Power'The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available.Also referred to as "excess equity." |
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Investopedia explains 'Buying Power'For example, if you have $1,000 cash in a margin account and the maximum margin rate is 50%, then your total buying power is $2,000. For a non-margin account, the buying power is equal to the amount of cash in the account. |
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