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Cash balance vs buying power

Your cash balance shows the total amount of currency in your account at a given point in time.

Your buying power reflects the funds available to invest or withdraw right now. It accounts for things like:

  • Pending orders

  • Unsettled deposits or trades

  • Withdrawal requests.

 

Example

Let’s say your account shows:

  • Cash balance: $1,000

  • Buying power: $1,000

You place a trade for $500:

  • Your buying power drops instantly to $500

  • Your cash balance remains at $1,000 until the trade executes and settles

Now, if you request to withdraw the remaining $500:

  • Your buying power reduces to $0 straight away

  • Your cash balance stays at $500 with $500 on hold for withdrawal until the request is processed and the funds leave your account

This difference ensures you always have a real-time view of what’s actually available to use.


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