Glossary 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 Cash Securities/Options Day trading margin buying power for cash securities/options is the amount of funds available for purchasing cash securities (non-marginable securities) or options. This is the same as Cash Available for Investment. If you purchase securities in an amount greater than this, you will create a debit balance in your account and will be charged interest for this portion that you have borrowed from your broker. Day trading margin buying power for cash securities/options is based on the account equity at the close of business on the previous business day which is then reduced by any open orders. It does not include the executed trades until the date the trade settles. This value does reflect today's trading activity. The value is reduced or increased as soon as an order is executed, not when the trade settles. All buy trades are debited (subtracted) and all sell trades are credited (added). The value of any account withdrawals will reduce the margin buying power as soon as the withdrawal is processed. Note: For securities held overnight, please refer to the other margin buying power values to avoid getting into a fed call. Day Trading margin calls are based on the highest open position that exceed starting Day Trading Buying Power (for 4x), or aggregate open position dollar amount above starting Day Trading Buying Power (for 2x and 1x). Day trading margin calls must be met within four business days; otherwise the account will be restricted to cash available for 90 days. The amount of maintenance margin excess is based on your account positions as of the close of business of the previous day. Source: E*TRADE FINANCIAL Copyright ©2009 by InvestorGuide.com. All Rights Reserved.