Buying Power Explained
Buying power is the number automation most often assumes is stable, and the assumption fails at exactly the moments that matter — because requirements rise when markets move.
Every StaxInvesting article tagged margin · 2 posts.
2 articles
Buying power is the number automation most often assumes is stable, and the assumption fails at exactly the moments that matter — because requirements rise when markets move.
Options traders arrive with the wrong mental model. An options buyer pays a premium and owns something; a futures trader posts collateral and owes performance — and the loss is not capped by what was posted.