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Buying power

Stock market  Buying on margin  Buying Rate
04/23/2014

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.


Buying power refers to the amount of money you have available in your account to buy equities. When you buy equities your buying power goes down. When you sell equities your buying power goes up.

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Trading Dictionary Terms and definitions for active trading, forex, futures, stocks, and options
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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.

Buying Power:
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.

Buying Power
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.

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).

Buying power
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.

Buying Power
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.

When buying power is no longer enough to move prices up or when selling power is no longer enough to move prices lower.
Expiration Date
Generally the last date on which an option may be exercised.

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 ...

Next post: Buying Power - Overnight & Day Trading

Want to become a day trader? Practice your strategies with the newly launched Tradingsim day trading simulator. Practice makes perfect.

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 Buying power ...

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 buying power 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 buying power of ...

For instance, "buying the Cal 13-12, SP-NP box spread", would be buying power at CAISO hub SP-15 versus selling power at CAISO hub NP-15 for 2013, while also doing the opposite (so, selling at SP-15 and buying at NP-15) for 2012.

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 buying power 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 buying power 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 buying power.

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 buying power. 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.

buying power (business definition)
Buying Power Index (business definition)
buyout (business definition)
buzz words (business definition)
by-product (business definition)
bylaws (business definition)
bypass trust (business definition) ...

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.

This signal indicates overbought conditions coupled with panic selling and a loss of buying power. The uptrend has reached new levels and more sellers start to show up than the bulls would prefer.

The only loan you should be using is with your day trading margin buying power. 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 buying power to the point that the Central Bank will raise interest rates to curb spending.

The thinking behind this is that when buying power decreases, thereby affecting the price of currencies, owning gold will hedge against your wealth decreasing.

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.

Leverage - Leverage refers to the increased buying power available in margin accounts. Leverage allows traders to enter larger positions than could be afforded with the money in a trading account alone. Leverage magnifies both profits and losses.

In the most aggressive form of pyramiding the increased margin buying power provided by gains is used to buy more. Obviously doing so is a very aggressive strategy that can have high rewards and high risks.
Related Terms: ...

While most of the other players we are going to discuss in this lesson do not have the size and clout to move the market in their favor, many of these bank traders are an exception to this rule and can leverage their huge buying power and inside ...

With these four calculations, Lowry invented two indexes: Buying Power and Selling Pressure. He devised an ever-evolving set of rules to establish them as reliable guides to market timing.

Exhaustion
When buying power is no longer enough to move prices up or when selling power is no longer enough to move prices lower.

Using a lot of buying power on these transfers, the number of buyers who are willing to keep buying at such high prices becomes exhausted. They are not willing to pay anymore- the market has reached a critical point and the trend is for a reversal.

'This enables them to use the collective buying power of a fund to reduce charges on a small starting portfolio.

Because it takes significant buying power to break through this resistance, such an event is considered a very positive event for the stock.

Deflation usually occurs during a recession and is characterized by supply exceeding demand, and while there is increased buying power, the amount of currency in circulation is greatly reduced.

Pyramid To increase holdings that an investor has by using the most buying power available in a margin account with paper and real profits.

Because by the time they are repaid the principal loan amount, the buying power of that principal is diminished - rising commodity prices have caused an increase in the cost of finished goods.

Inflation refers to the fact that a given amount of currency will have a decrease in its buying power in the future. A given amount of money will buy less quantity of goods in the future than it will today.

Support : A price, or price zone beneath the current market line where buying power is sufficient to halt a price decline.

There are fresh longs ready to speculate, and short-sellers who don't realize they're trapped. These two forces combine to generate tremendous buying power that can trigger explosive moves.

I
Inflation: Economic condition where consumer goods price increases, limiting buying power.
J
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Below is a quick sample margin schedule from our broker thinkorswim. Margin schedules are great to help you quickly calculate and determine if you are going to have enough buying power for a particular position or strategy.

It's possible to eliminate all possible risk of losing money (preserve capital) by placing money in a steel safe. But even under these circumstances, inflation will erode the buying power of that money over time.

What often happens is that if the interest rate increases by only half a percent per year, the actual buying power of your $10,000 at the end of 5 years may actually be only about $7,500 or so.

In an uptrend three long black days occur that open at the previous day's close. This pattern is similar to the Three Black Crows pattern but typifies a more severe loss of buying power. A bearish trend is almost certain.

On Balance Volume (OBV) relates price to volume, and tries to capture the buying and selling pressure in the market. It assumes that when a security closes up for the day, the number of shares transacted represent buying power.

It allows traders to open positions on amounts that greatly exceed their account limits and so increase their buying power. Swissquote offers a 1% margin (or 1:100 leverage), which means you can control 100 times your deposit in the real market.

At the same time, the NFP numbers can also measure whether inflation is on the rise or not in the economy. A rise of inflation would obviously be of interest to traders since it would mean that the national currency has less buying power and would ...

However, the risk of this type of money supply involves inflation. When a currency is debased like this it can result in high levels of inflation which causes us to reduce our buying power on goods and services.

buying panic (investment & finance)
buying power (investment & finance)
buying the basis (investment & finance)
buyout (investment & finance)
BW (investment & finance)
bylaws (investment & finance)
bypass trust (investment & finance) ...

They also ignore the subtle deterioration in the quality of spending choices due to the shift of buying power from people who have demonstrated a superior ability to invest or produce (creditors) to those who have demonstrated primarily a superior ...

See also: See also: Market, Trading, Stock, Investor, Profit

Stock market  Buying on margin  Buying Rate
04/23/2014

 
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