Robinhood buying power is the amount currently available for purchases, but it is not necessarily cash you own or cash you can withdraw.
Buying power can include:
- Settled cash
- Eligible proceeds from recent stock or options sales
- Instant Deposit funds that have not arrived from your bank
- Borrowed money if margin investing is enabled
For example, you could see $1,000 in buying power before the related bank transfer has reached Robinhood.
To see how much money you can actually withdraw, check "Cash available to withdraw." Robinhood defines buying power as money available for purchases. Withdrawable cash is the amount available to transfer out of the account.
Buying Power vs. Cash Available to Withdraw
| Robinhood balance | What it means | Is it necessarily your cash? |
|---|---|---|
| Buying power | Amount available to purchase investments | No |
| Cash available to withdraw | Amount currently available to transfer to your bank | Usually the better measure |
| Instant Deposit buying power | Temporary trading access while a bank transfer is pending | Not yet settled in Robinhood |
| Margin buying power | Additional amount Robinhood may allow you to borrow | No, if used it becomes a loan |
| Portfolio value | Current value of your investments and cash | Not automatically spendable or withdrawable |
When Robinhood Buying Power Is Your Money
Buying power generally represents your own money when it comes from:
- A completed bank deposit
- Settled cash already in your Robinhood account
- Settled proceeds from selling stocks or options
- Cash from a crypto sale, subject to the rules of the relevant Robinhood account
Even your own money may be temporarily unavailable for withdrawal if it is tied to a pending order, unsettled trade, or pending transfer. Stock and options trades generally settle one trading day after the trade date, known as T+1.
When Buying Power Is Not Yet Settled Money
Instant Deposits
Robinhood may give you buying power before your bank deposit arrives. You might initiate a $1,000 transfer from your bank and receive some or all of that amount as buying power immediately.
You can use the money for trading, but the bank transfer may still take up to five business days to arrive in your Robinhood account. If the transfer is reversed, Robinhood can reduce your buying power or create an account deficit.
Example: You deposit $1,000, receive $1,000 in Instant Deposit buying power, and buy stock. If your bank later rejects the transfer, you may need to deposit the $1,000 again or sell investments to cover the deficit.
Unsettled Sale Proceeds
After you sell stocks or options, the proceeds may appear in your account before they are fully settled.
- In a cash account, Robinhood says you generally must wait for settlement before using those proceeds to make another trade.
- In a margin account, you may be able to trade with eligible unsettled proceeds immediately.
- Withdrawal generally requires the funds to become settled and withdrawable.
When Buying Power Is Borrowed Money
If margin investing is enabled, part of your buying power may represent money Robinhood allows you to borrow against your investments.
For example:
- You have $5,000 of your own cash.
- Robinhood gives you additional margin buying power.
- You purchase $7,000 of stock.
- The extra $2,000 can become a margin loan.
Robinhood charges interest on a settled margin balance. If your investments decline and your account falls below required maintenance levels, Robinhood may require more funds or sell securities to cover the shortfall.
Available margin is not automatically a debt just because Robinhood displays it. The borrowed amount becomes a loan when you use more than your own available cash or otherwise create a margin balance.
How to Check Whether the Money Is Really Yours
In the Robinhood app:
- Open Account.
- Select Buying power to see the amount available for purchases.
- Check Cash available to withdraw to see the amount currently eligible for withdrawal.
- If margin investing is enabled, review margin used or your margin balance.
- Check for pending deposits, unsettled trades, pending orders, or account deficits.
If your buying power is higher than your cash available to withdraw, the difference may come from Instant Deposits, unsettled funds, margin borrowing capacity, or cash reserved for transactions.
Can You Withdraw All of Your Buying Power?
No. Buying power and withdrawable cash are different balances.
You may be unable to withdraw part of your buying power because:
- A bank deposit is still pending
- Stock or options sale proceeds have not settled
- Cash is reserved for a pending order
- You are using margin
- Cash is being held as options collateral
- A transfer was reversed
- Your account has a deficit or another restriction
Robinhood excludes pending deposits, unsettled transactions, pending orders, margin activity, and certain collateral from withdrawable cash calculations.
The Simple Rule
Use buying power to answer:
"How much can I use to place a trade?"
Use cash available to withdraw to answer:
"How much of my money can I currently move back to my bank?"
If you want to avoid borrowing, check that margin investing is disabled and confirm that your purchase does not exceed your settled cash. If you use Instant Deposits, keep enough money in your bank account for the transfer to clear, even if Robinhood already lets you trade with the funds.