Buying power

[Kar W 11]

All along, I thought the buying power (for most brokerages) is 4x of your account size.  So for a $25,000 account (minimum for a pattern day trader), the buying power should be $100,000.  But, according to this article from Investopedia.com, the power buying is 4x the amount over $25,000.  I am confused.  

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[Ali 3]

Buying power is different for all brokers. It's usually dependant on how much money you have and the broker itself. I hope I'm right on that!

[Norm 46]

Most brokers give 4x day trading buying power as mentioned above. I know GMEG gives 6x for accounts over a certain equity balance.

The quoted article is mixing the pattern day trader (PDT) rule in the US with buying power. While $25,000 equity would give you $100,000 in buying power, if you dip below the $25,000 equity you're cut off.

Edited July 26, 2018 by Norm