Buying power meaning.

[Marian Median]

While buying influence can take on a different significance relying upon the unique situation or industry, in fund, buying influence refers to the measure of money accessible for financial specialists to buy protections in a leveraged account. This is referred to as a margin account, as traders apply for a line of credit dependent on the measure of money held in their brokerage account.

 

[dirt_diver]

Buying power, also referred to as excess equity, is the money an investor has available to buy securities when considering the term in a trading context. Buying power equals the total cash held in the brokerage accountplus all available margin.