Cash balance vs buying power

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.