Buying Power Index (B.P.I.)
A composite indicator of consumer demand in specific cities, counties, and metro areas. Published annually by Sales and Marketing Management magazine, the B.P.I.
refers to the amount of money you have available in your account to buy equities. When you buy equities your goes down. When you sell equities your goes up.
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Trading Dictionary Terms and definitions for active trading, forex, futures, stocks, and options
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is rarely constant in the investing world. The number fluctuates from day to day based on market conditions, world economics and investor margins. EquityScholar.
Money Management and Buying Power
Arbitrary Number of Stocks
A first money-management method would be to trade in a limited number of stocks out of an unlimited list of stocks.
The amount of money available to buy securities. This is determined by the sum of the cash held in the brokerage account and the loan value of marginable securities.
In a margin account, the maximum dollar amount of marginable securities that the client can purchase or sell short without having to deposit additional funds.
Amount of credit available to a client in a brokerage account for the purchase of additional securities and is determined by the dollar amount of securities that can be margined.
Buying power: In a margin account, the dollar amount of securities the customer may purchase without making a cash deposit. The buying power in an account is a function of the SMA (which see).
The amount of money available to buy securities, determined by adding the total cash held in brokerage accounts and the amount that could be spent if securities were margined to the limit.
With more buying power, you can increase your total return on investment with less cash outlay. But be careful, trading on margin magnifies your profits AND losses.
Margin Call ...
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Day Trading Buying Power
The rule increases day trading buying power to up to 4 times a pattern day trader's maintenance margin excess.
It compares the with the selling power in relation to the opening price. If the price moves higher, the tends to weaken and vice versa.
Normal Value Ranges ...
Option Buying Power Calculated based upon account equity less any requirements and pending purchases.
Buy them back Buy write Buy-and-hold strategy Buy-and-write strategy Buyback Buydown Buyer credit Buyer's market Buyers/sellers on balance Buyin management buyout (BIMBO) Buying climax ...
The dollar's bottom line is not against gold, but instead the buying power of a good life here within our borders. So long as the world is seeking to break into our land of opportunity, the dollar will remain a powerhouse of currency everywhere.
Margin: A margin account can have more than the cash value of the account alone. A margin account is generally necessary to trade option spreads or naked option positions.
Following the surge, which uses up a lot of buying power, the number of those buyers willing to keep buying at these high (-inflated) prices becomes exhausted.
chance that you won't get your money back); market risk (the chance that interest rates will soar, reducing the value of your dividends as well as of your bond); and inflation risk (the chance that rising price levels will erode the of ...
Buying stocks on margin allows you to double your buying power by borrowing up to 50% of a stock's price. You borrow this from your online broker and there are of course costs associated with this doing.
Whenever the account value rose, King Midas used the extra of the account to purchase more stocks, either adding to existing positions, or starting new positions.
Short-term trades: Very high turnover, but not daytrading.
but to preserve the wealth they have already accumulated by taking what we call "intelligent risks" to achieve reasonable returns that can simply outpace moderately rising inflation and/or the devaluation and loss of the greenback's buying power .
On UpDown, if you're holding short positions, you might receive a margin call if your falls below -$10,000.
Trading currencies on margin lets you increase your buying power. Here's a simplified example: If you have $2,000 cash in a margin account that allows 100:1 leverage, you could purchase up to $200, ...
The sharp observer will note that the 25 percent maintenance margin requires the same level of equity as the four times day trading .
Consumer Price index has high relevance due to the amount of inflationary pressure it applies to consumer's buying power. When the price of goods in this basket rises, it erodes the value of the local currency.
Annual inflation reduces your . In recent years, the U.S. Government reports a 3% annual inflation rate. The business community doubles it, so that it better reflects the actual rise in living costs.
As mentioned above, trading on forex margin gives you more buying power and the potential for more profits or losses. How this works is; a 1% margin trading forex account allows you to control a position size of $100,000 with $1,000.
The only loan you should be using is with your day trading margin . Do not start or continue to day trade, if you have to take out loans, credit, or use part of your retirement to get in the game.
You are expected to use half of your buying power in setting both forex trades. This enables you to enter a hedge when instance 4 and 5 above occurs.
Never wait for price to cut X 1 or X 3 and use all your buying power .
A CPI that continues to trend upwards month over month could be a signal that inflation is eroding to the point that the Central Bank will raise interest rates to curb spending.
TeenAnalyst Advice: Having all your money in cash for a long period of time isn't a good idea because inflation will eat away at your buying power. However, it's important to have access to some cash at all times for emergencies.
See also: Market, Trading, Stock, Investor, Profit