Buying Power

Buying power is a term used to describe the amount of capital you have to trade with. There are different rules, regulations and leverage opportunities for different accounts, so this is an important term to understand.

Buying power reduction (BPR) refers to the amount of buying power a particular trade requires. This number is not always stagnant, and can fluctuate, especially with naked option positions.

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If you prefer video, here are some segments on tastytrade that will be helpful!

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