Peter2
Fastane Legend. RIP.
Say I have $50,000 in a margin account. So I buy $200,000 worth of stock on Monday morning. I sell the same day and break even at the end of the day (200,000 at closing). What is my buying power on Tuesday? I just don't understand how it works with settlement and the free ride policy.
The regular margin buying power is based on the previous day's closing prices and is reduced by any open orders. The value is reduced or increased as soon as the trade executes, not when the trade settles.