Buying Power Definition -

: It is the real-world value of a currency—how many goods or services one unit of money can buy. For example, if a bag of coffee cost $10 last year but costs $15 today, your dollar's buying power has decreased.

: It is the total capital an investor has available to purchase securities. This is often referred to as "excess equity" and includes both your settled cash and any available credit from your broker. Story: The Tale of Two Accounts buying power definition

: $10,000 Elena could only buy what she actually owned. If she bought $8,000 in stocks, her remaining buying power was $2,000. She never worried about debt, but she could only move as fast as her own cash allowed. 2. The Power of Leverage (Margin Account) : It is the real-world value of a

In the world of finance, (or purchasing power) essentially measures your ability to acquire assets. Depending on whether you are at the grocery store or at a trading desk, it means something slightly different. The Two Faces of Buying Power This is often referred to as "excess equity"