How to Calculate Buying Power

The video provides a simple explanation of how to calculate buying power and how the use of these additional funds will impact your trading account.  It is important to note that each broker will have different rules around buying power.  In this example, the speaker talks about a brokerage house that provides 200% margin basically; meaning, the availability of an additional amount of cash in the amount of 2 times the cash balance. 

The speaker reviews the impacts of using this "credit line" when it comes to the amount of shares you can purchase, along with profits and losses. 
Tim Ord
Ord Oracle

Tim Ord is a technical analyst and expert in the theories of chart analysis using price, volume, and a host of proprietary indicators as a guide...
Day Trading Simulator provides the ability to simulate day trading 24 hours a day from anywhere in the world. TradingSim provides tick by tick data for...

Send this article to a friend.

Enter multiple addresses on separate lines or separate them with commas.