Some brokers offer even higher leverage (up to 4x) for "day trading," provided you maintain a minimum balance (usually $25,000). 3. Why Buying Power Fluctuates
In a standard cash account, your buying power is straightforward: it is the you have on hand.
When you sell a stock, the money doesn’t always become "buying power" instantly. Most trades take one business day to "settle" (T+1). If you buy more stock using "unsettled" funds and sell it too quickly, you could trigger a Good Faith Violation . 2. Margin Account Buying Power
If you have $5,000 in your account, your buying power is $5,000.