Trading

Buying power

The amount available in an account to purchase securities, including permitted margin where applicable.

Plain-English context

Why it matters

This term is part of the language used to describe ownership, pricing, transactions and investment outcomes.

EXAMPLE

If buying power appears in a quote, filing or account screen, read it together with the instrument, timeframe and calculation method.

COMMON MISTAKE

Assuming Buying power has one universal interpretation without checking the source, rules, timeframe or methodology.

Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.