Buying power

Buying power is an amount of money which an investor has in order to purchase securities, taking Margin into account. In other words, the buying power is investors’ money which is on a broker’s account, plus extra funds which can be obtained. The development of a market is limited by the scope of existing buying power. In a general sense, buyer power is a synonym for purchasing power: an economic indicator which defines the amount of goods or services one can acquire with a certain currency.