Back Forward Glossary A-Z Index Close Window Back to Top Close Window
Questions?
  Glossaryprint
A | B | C | D | E | F | G | H | I | J | K | L | M | N |
O | P | Q | R | S | T | U | V | W | X | Y | Z |
1 | 3 | 4 | 5

Definitions by InvestorWords.com
  What is...?
Day Trading Margin Buying Power for Marginable Securities
Day trading margin buying power for marginable securities is the total dollar amount available to purchase marginable securities during regular market hours. This buying power is intended for the purchase of securities that will be liquidated on the same day as the purchase. Any portion of this amount above and beyond your Cash Available for Investment will be on margin. You will be charged interest for this portion that you have borrowed from your broker. The amount you can borrow is based on the value of the cash and securities you currently have in your account and is multiplied by a multiple according to your pattern day trading status. If you use the day trading buying power during After Hours sessions, your account may be subject to liquidation if you exceed your regular margin buying power.

The regular margin buying power balance reflects the Federal Reserve requirement of 50% and E*TRADE Securities minimum house margin maintenance requirements. The value is based on the previous day's closing prices and reflects today's trading activity.

The regular margin buying power is based on the previous day's closing prices and is reduced by any open orders. The value is reduced or increased as soon as the trade executes, not when the trade settles. All buy trades are debited (subtracted) and all sell trades are credited (added). The values from non-trading activity, such as withdrawals will impact the margin buying power intra-day. The full buying power may not be available for certain higher requirement stocks.

Note:
This value does not guarantee that securities purchased up to this value will not lead to a margin call. If the value of the securities in your account goes down, you can find yourself at risk for or
Copyright ©2009 by InvestorGuide.com.
All Rights Reserved.