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What is Buying Power

May 14, 2020

The day trading rules will affect your buying power. You can trade up to four times your maintenance margin excess as of the close of business of the previous day.

It is important to note that we may impose a higher minimum equity requirement and/or may restrict your trading to less than four times the day trader’s maintenance margin excess. A list of securities that have day trading and overnight margin requirements higher than the normal can be found in the Client Center on the Special Margin Requirements page.

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Introduction to Day Trading

Introduction to Day Trading

Market BasicsStocks & ETFsDay trading refers to buying then selling or selling short then buying the same security on the same day. Just purchasing a security, without selling it later that same day, would not be considered a day trade. Does the rule...

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Day Trading Requirements

Market BasicsStocks & ETFsThe rules adopt the term “pattern day trader,” which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days. Under...

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Why Day Trading Margin Requirements are Important

Market BasicsStocks & ETFsThe primary purpose of the day-trading margin rules is to require that certain levels of equity be deposited and maintained in the margin accounts of Day Traders, and that these levels be sufficient to support the risks...

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