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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