| Buying
Power |
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The money an investor has available to buy securities. If this is
a margin account it would be total cash held in the brokerage account
plus maximum margin available (usually 50%).
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For
example, if you had $1000 cash in a margin account and the maximum
margin rate is 50% then your total buying power would be $1500. For
a non-margin account the buying power would equal the amount of cash
in the account. |
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Dictionary
