Buying power represents the total capital available to initiate new trades. It is derived from your cash balance plus any available leverage provided by your account type.
OptionsHouse (now part of ) does not currently publish a standalone "white paper" on buying power, but their requirements for stocks and options follow standard Regulation T and specific house rules for margin. How Buying Power is Calculated optionshouse buying power
: Accounts flagged as Pattern Day Traders (PDT) can access up to 4:1 leverage for intraday stock trades. Buying power represents the total capital available to
Example: $10,000 in equity allows for $40,000 in intraday stock buying power. How Buying Power is Calculated : Accounts flagged
: These typically provide 2:1 leverage for stock positions held overnight.
Unlike stocks, long options (buying calls or puts) are non-marginable and must be paid for in full. What is Options buying power? - Public FAQ
Example: With $10,000 in settled cash, you can buy exactly $10,000 worth of stock or options.