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Margin Buying Power


What are the different types of margin buying power?

Buying power is the money an investor has available to purchase securities. It includes the total cash in the brokerage account and all available margin. In margin accounts, there are two types of buying power:


Overnight Buying Power (ONBP)

Overnight Buying Power (ONBP) is the amount of money available to buy securities and hold those positions overnight. In most cases, ONBP is equal to double the margin excess.


Day Trading Buying Power (DTBP)

Day Trade Buying Power (DTBP) is the amount of funds available in your account for trading on a given day. DTBP is determined at the start of the trading day and will not increase from the sale of marginable stocks held overnight or deposits made on the same day. You'll need to wait until the following business day for these actions to be reflected in your DTBP.


A purchase during the day will decrease your DTBP, while a subsequent sale of the same stock (a day trade) will increase it again. The replenished DTBP will be based on the lesser of the previous day's closing price and the sale price, multiplied by the quantity.


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